Home Business Bitcoin rushed to 50,000 US dollars. International “financial giants” still doubt their identity.
Bitcoin rushed to 50,000 US dollars. International "financial giants" still doubt their identity.

Bitcoin rushed to 50,000 US dollars. International “financial giants” still doubt their identity.

by YCPress

Bitcoin’s unstoppable upward momentum has created a myth in the capital market. According to CoinDesk data, Bitcoin peaked at $50,584.85 on February 16, the first time in history to hit 5 The highest point in history is US dollars.

According to the data of CoinDesk website at 14:00 on the 17th, Bitcoin has fallen from a high of $50,000, but it still maintains a price of $49679 and is close to $50,000.

In the second week of February 2021, Tesla, Mastercard and New York Mellon Bank entered Bitcoin one after another. The support of mainstream institutions has helped Bitcoin rise by nearly 70% from the beginning of the year to the present.

According to the price trend of Bitcoin displayed on CoinDesk, Bitcoin only had a price level of $10,000 in early October 2020.

After jumping to the platform of 20,000 US dollars in December last year, it suddenly accelerated and more than doubled in more than two months to an eye-popping 50,000. US dollars.

However, according to foreign media reports, the Bitcoin market is still full of obvious bullish sentiment. According to Bloomberg in the United States, Coinpoint Global, Morgan Stanley’s investment company, is studying whether Bitcoin can be a suitable choice for investors.

Tranchev, CEO of Nexo, a virtual currency lending institution, said: “Whether [Tesla CEO] Musk, MasterCard or Morgan Stanley enter, the current market sentiment and momentum cannot be ignored, and many people are annoyed that they failed to catch the Bitcoin Express.”

However, historically, the characteristics of Bitcoin’s price ups and downs are very obvious. For investors, they are full of risks.

If you are careless, you will lose the whole market. Even if it has reached a high of 50,000 US dollars, the market has an opinion on the future trend of Bitcoin and is still extremely optimistic.

But the legitimacy of Bitcoin’s identity has been suspected by global financial official decision makers, and it has caused chaos to the existing international financial order.

The most important thing to ignore is the attitude of the new U.S. Treasury Secretary Yellen, who has always been negative about Bitcoin. On January 25, Yellen’s take office was regarded as bad news, causing the cryptocurrency to plummet on the same day, and Bitcoin fell by more than 10% at its lowest time of the day.

On January 19, former chairman of the Federal Reserve, Yae attended the “appointment hearing” organized by the Financial Committee of the United States Senate. She expressed her views on cryptocurrencies, saying that the United States should be aware of the emerging tools for terrorist financing.

Cryptocurrencies have the opportunity to be abused by illicit financing, and the government will need to examine the ways in which they can be restricted and ensure that money laundering is not carried out through these channels. Yellen made a statement that Bitcoin fell for three consecutive days.

Another international financial policy decision-maker, former ECB President Draghi, also has a bad attitude towards Bitcoin.

Almost at the same time as Yellen, she also said that Bitcoin is a highly speculative asset, involving money laundering, and a regulatory consensus on Bitcoin needs to be reached at the global level.

China clearly promises that Bitcoin is not legal tender. Although China does not legally prohibit individuals from participating in the sale of Bitcoin, it clearly prohibits the establishment of Internet platforms to provide transactions for virtual currencies such as Bitcoin, nor does it allow the exchange between virtual currencies and digital currencies.

On December 5, 2013, the People’s Bank of China and other five departments jointly issued the Notice on Preventing Bitcoin Risks, pointing out that Bitcoin is not issued by the monetary authority, does not have legal and mandatory monetary attributes, and is not a currency in the real sense.

The Notice prohibits financial institutions and payment institutions from carrying out Bitcoin-related business and reminds individuals to guard against risks, but does not explicitly prohibit individuals from participating.

In 2017, the central bank and seven other departments issued the Announcement on Preventing the Financing Risks of Token Issuance, prohibiting the establishment of virtual currency trading platforms in China and the exchange between virtual currency and legal tender. Subsequently, the large-scale virtual currency trading platform in China was shut down one after another.

Qu Qiang, assistant director of the Institute of International Monetary Research of Renmin University of China, said in an interview with the Global Times recently that the domestic supervision of virtual currencies such as Bitcoin is very strict.

Financial institutions are prohibited from participating in Bitcoin business in China. Personal transactions are personal behaviors, but we must pay attention to market risks to avoid unnecessary The required loss.