Bitcoin rose 30% in a week and exceeded $40,000. Many giant companies announced new moves in the encryption field

Original title: Bitcoin rose 30% in a week to break through $40,000, and many giant companies announced new moves in the encryption field

China Times (www.chinatimes.net.cn) reporters Wang Yongfei and Ran Xuedong reported from Beijing

The crypto market has been on the rise in the past week, with a 30% increase and breaking through $40,000 several times. After two months of volatile downward trend, there has been a rebound. As of the time of writing, Bitcoin is now trading at $40,001.22, with a 24-hour increase of 8.11% and a high of $40,556.

With the latest round of attention and participation of traditional giants in the crypto market, the crypto market seems to have rebounded. Wang Haifeng, a researcher at OKLink Research Institute, told our reporter: "The price fluctuation of any investment target is completely dependent on the overall market drive and is not affected by any unilateral factors or anyone's will. Therefore, the market ups and downs in the short term in the future cannot be predicted. According to OKLink data, the price of Bitcoin has continued to rise in the recent market, breaking through the integer mark of 40,000 US dollars, setting a new high since June 16."

This round of rise is closely related to the release of encryption-related news by several giant companies.

Our reporter learned that although Amazon has denied accepting Bitcoin payments and issuing cryptocurrencies recently, it also said that it will continue to explore cryptocurrencies. The previous news that Amazon may accept Bitcoin payments became the main reason for the rise. JPMorgan Chase has also provided Bitcoin services to retail customers. Previously, the bank only provided Bitcoin services to institutional customers or high-net-worth customers.

Capital Group, a giant that manages trillions of dollars in assets, disclosed that its subsidiary Capital International Investors has acquired 12.2% of MicroStrategy's shares, worth more than $500 million. MicroStrategy is currently one of the world's largest Bitcoin investment institutions, with 105,100 Bitcoins to date. This move also shows that Capital Group has indirect risk exposure to Bitcoin.

Wang Haifeng said that the market generally believes that Musk's announcement that Tesla will resume accepting Bitcoin and the news that his other company SpaceX also holds Bitcoin are the main reasons for the rise in Bitcoin prices. However, from a historical perspective, the price of the digital asset market itself fluctuates greatly, and the rapid rise in the market in the short term should be the result of the comprehensive characteristics of the market, and investors should view it rationally.

On July 27, Tesla released its second quarter report showing that as of June 30, the net value of digital assets was $1.311 billion. In the six months ending June 30, 2021, Tesla purchased a total of $1.5 billion in Bitcoin, with a fair market value of $1.47 billion. In the first quarter of 2021, Tesla's total investment in Bitcoin reached $1.5 billion, which means that Tesla did not make any new investments or sell Bitcoin in the second quarter.

In addition, the acceptance of Bitcoin as payment for certain products in certain regions was suspended in May 2021 to comply with relevant laws during the three months ending March 31, 2021.

According to the second quarter report, Tesla may restart accepting Bitcoin as payment for its products and services in the future. Tesla has ownership and control over its digital assets and mentioned that it may use third-party custody services.

According to the first-quarter report previously provided by Tesla to regulators, in April Tesla announced that it had sold $272 million worth of Bitcoin in the first quarter (approximately 10% of its holdings at the time) and made a profit of $101 million.

Tesla mentioned in its second quarter financial report that we believe in the long-term potential of digital assets, both as an investment and as a liquid substitute for cash. Like any investment, and consistent with the way we manage our legal cash and cash equivalent accounts, we can increase or decrease our holdings of digital assets at any time based on the needs of the business and our views on market and environmental conditions.

As for the risks of digital assets, Tesla pointed out that the popularity of such assets is a relatively new trend, and their long-term adoption by investors, consumers and businesses is unpredictable. Their lack of physical form and decentralized nature may also threaten their integrity with malicious attacks and technological obsolescence. Bitcoin is an intangible asset without a centralized issuer or management agency. Digital assets have been and may be affected by security vulnerabilities, cyber attacks or other malicious activities in the future, as well as the loss or human destruction of private keys required to access such assets.

Editor-in-charge: Meng Junlian Editor-in-chief: Ran Xuedong