Xinhua News Agency Financial Watch: What is the new round of rising momentum of Bitcoin?

Xinhua News Agency, Washington, June 17 (Reporter Yang Chenglin) Recently, the price of a single bitcoin broke through the $9000 mark. This year, the increase has exceeded 150%, which has once again triggered market investors' attention. Analysts believe that the recent "embrace" of cryptocurrencies by American well-known companies has triggered the current bitcoin to rise, while the intensification of international trade tensions has strengthened the willingness to hedge in the capital market and boosted the rise of Bitcoin.

The participation of famous enterprises has caused rise

According to data from the US Bitcoin Base, the price of bitcoin broke through the $9000 mark around 0:00 EST and continued to rise. At 8:00 on the 17th, it reached around $9,350, the highest since May last year.

Analysts believe that the current rise in bitcoin is mainly due to the positive news of well-known companies participating in the cryptocurrency market, which has enhanced the market's enthusiasm and increased investor confidence in cryptocurrency.

The US "Wall Street Journal" recently quoted people familiar with the matter as saying that social media Facebook has signed contracts with well-known companies such as MasterCard, Visa, PayPal and Uber, and plans to introduce a cryptocurrency next year. After the news was released, the bitcoin price opened the pattern of rising days.

Cricket's chief business officer, Crystal Keck, believes that Bitcoin broke through $9,000 in response to the news. Ryan Steinberg, CEO and co-founder of Arca Asset Management in the United States, said that when important large companies participate in the cryptocurrency market, cryptocurrencies will be integrated into the trend of the times in a different way.

Since the beginning of this year, a number of well-known American companies have launched cryptocurrency business. AT&T has announced that it will accept customers to use cryptocurrency to pay online bills, becoming the first US mobile communication service provider to do so. Banking giant JP Morgan Chase announced its cooperation with Microsoft to expand the blockchain platform at the beginning of last month. It also launched its own cryptocurrency "JPM Coin".

Brett McGonig, CEO of American Capital Link International, said in an interview with the US media that bitcoin prices would be much higher if institutional funds began to contact Bitcoin.

Hedging characteristics attract attention

Since the beginning of this year, the US capital market has continued to fluctuate under the impact of multiple factors such as the escalation of trade disputes and the expected slowdown in economic growth. Bitcoin has shown the characteristics of safe-haven assets and attracted many investors' attention.

The data shows that bitcoin prices have risen more than 150% this year. Especially since the beginning of May, Bitcoin has been more eye-catching in the market environment where market confidence has fluctuated greatly. The price has repeatedly penetrated the thresholds of 6,000 US dollars, 7,000 US dollars, 8,000 US dollars and 9000 US dollars. Its potential as a safe-haven asset has once again received market attention.

The so-called safe-haven assets refer to assets that can hedge the risk and avoid losses as much as possible when the risk event occurs. Safe-haven assets tend to exhibit “reverse fluctuations” in price relative to relatively high-risk assets, such as the “seesaw” between US stocks and US debt.

A recent report by the US cryptocurrency trading platform SFOX shows that there is a “near perfect negative correlation” between the bitcoin price in May and the S&P 500 index, highlighting the public's intention to use Bitcoin to hedge the global market risk.

Steinberg believes that recent international trade tensions have given rise to bitcoin. McGonig said that when investors look for a safe haven or hedging tool, their money flows to Bitcoin.

Anthony Pongliano, founding partner of Morgan Crick Digital Corporation of the United States, believes that Bitcoin plays a role in countering the instability of the global market, which is the core reason for institutional investors to hold cryptocurrency.

The outlook of the market is still to be observed

Despite the recent eye-catching performance of Bitcoin, investors are still showing a divergent view on their outlook. Joshua Frank, co-founder of the digital currency analysis platform "TheTIE", said that the market's 100-day average confidence index for Bitcoin has remained positive for 120 days since mid-February this year, and bitcoin on social networks. The discussion is also more heated, and if this confidence and heat can be maintained, Bitcoin will continue to appreciate.

Lars Seyy Kristensen, chairman of Concordium, an American blockchain network company, believes that the bitcoin market is highly volatile and has a small trading volume. It can push its prices up or down by thousands of dollars without much effort. .