Bitcoin breaks through $60,000 again, is it expected to reach $80,000 in the future?

Bitcoin continued to rise, breaking through $60,000 per coin for the first time since March 19. Some institutions are optimistic that as institutional investors accelerate their entry into the market, the price of Bitcoin is expected to rise above $80,000 in the coming period.

"The further embrace of Bitcoin by traditional institutions has boosted its price. From the perspective of international fundamentals, the U.S.'s efforts to stimulate the economy by flooding the market with money is still continuing, and the market's concerns about the expected tightening of the monetary environment have been alleviated to some extent," said Du Jun, co-founder of Huobi Group.

As for the future trend of Bitcoin prices, the bulls are more optimistic. Danny Scott, CEO of British cryptocurrency exchange CoinCorner, tweeted that the Bitcoin balance on the exchange is declining, which is a bullish indicator that could push Bitcoin to a record high of $83,000.

According to Vetle Lunde, an analyst at crypto data company Arcane Research, investment companies already own more than 800,000 bitcoins, accounting for 4.3% of the current supply of the cryptocurrency.

At current prices, Bitcoin funds hold a total of more than $46 billion worth of Bitcoin, with digital asset investment giant Grayscale Investments still in the lead, accounting for 82% of holdings.

Although he is optimistic about the long-term trend of Bitcoin, Du Jun also reminds that every time Bitcoin breaks through an integer mark, there will be a correction to varying degrees to digest the previous gains, so it is necessary to continue to pay attention to the range of the correction.

Mainstream institutions are accelerating their entry into the market

The mainstream financial industry's increasing acceptance of digital currencies and large companies' active embrace of Bitcoin have helped push Bitcoin prices to new highs.

PayPal, the global payment giant, announced on Tuesday that it will launch a cryptocurrency settlement service. Currently, the company has allowed U.S. users who hold cryptocurrencies in their PayPal wallets to convert Bitcoin, Ethereum, Litecoin, etc. into legal tender to purchase goods directly from online merchants.

"This is the first time that users can use cryptocurrency seamlessly in their PayPal wallet, just like using a credit or debit card." PayPal President and CEO Dan Schulman told foreign media that this feature will boost the company's attention to mainstream applications of cryptocurrency while providing users with more choices and flexible payment methods.

The day before, Visa, one of the world's largest credit card payment companies, also announced that it would allow the use of cryptocurrency USD Coin to settle transactions on its payment network. Other financial institutions including Bank of New York Mellon and BlackRock are taking measures to expand the use of cryptocurrency in investment and payment.

Not only financial giants, CME also announced yesterday that it plans to launch a mini Bitcoin futures contract that will enable traders to invest in fractional units of the digital currency, which also boosted Bitcoin prices.

"CME proposed to launch a mini Bitcoin futures contract in May, which will allow investors to adjust their Bitcoin risk exposure and enrich their trading strategies. It will also be more friendly to small traders. Previously, Tesla's official US website supported the use of Bitcoin for payment, which has broadened the application scenarios of Bitcoin." Du Jun told reporters.

Regulatory attitude may be an uncertainty factor

At present, regulatory attitude remains an uncertain factor facing the Bitcoin market.

U.S. Treasury Secretary Janet Yellen previously warned that Bitcoin is highly speculative, often used for illegal financing, its application is inefficient, and investors should be careful.

Earlier, Ray Dalio, founder of the world's largest hedge fund, Bridgewater Associates, said that Bitcoin is "very likely" to be declared illegal, just as the United States introduced the Gold Reserve Act in 1934 to declare private gold holdings illegal. Dalio claims that he is not a Bitcoin expert. Although he is not optimistic about the future of Bitcoin, he recognizes that Bitcoin is a way of storing value.

Today, former Congressman Ron Paul said that gold and Bitcoin are at risk of being suppressed by the government.

However, according to foreign media reports, International Monetary Fund (IMF) Managing Director Georgieva seems to be less skeptical about Bitcoin than senior US policymakers.

"It's a way of investing that gives people a certain amount of trust in the asset," Georgieva said, adding that she does not believe cryptocurrencies are an important part of how the monetary system works, or even a larger part.