Xinhua News Agency: Is it the shortage of supply or speculation that drives the market? The long and short sides of Bitcoin market diverge significantly

Xinhua News Agency, New York, January 13, Summary: Is supply insufficient to meet demand or is it driven by speculation? Bitcoin market has obvious differences between long and short positions Xinhua News Agency reporter Liu Yanan

The price of Bitcoin has soared recently, breaking through the 30,000 USD and 40,000 USD mark, attracting much attention from the market. Analysts believe that the rise in Bitcoin prices is driven by factors such as the entry of institutional investors and the abundance of funds in the international financial market. However, market participants have obvious differences in their views on the future trend of Bitcoin.

Some market participants believe that unlike the previous surge and subsequent plunge in Bitcoin prices, this round of price increases is due to the imbalance between supply and demand for Bitcoin in the market and may continue to rise in the future.

Anthony Scaramucci, co-founder of Skybridge Capital, and Brett Messing, president of Skybridge Capital, recently wrote that according to the design rules, about 900 new bitcoins appear every day, but the demand for bitcoin is significantly greater than the supply. If the trend of supply and demand continues, the price of bitcoin will rise even higher.

Douglas Borthwick, chief marketing officer of INX, a U.S. digital asset trading platform, said that institutional investors have invested billions of dollars in the cryptocurrency market, which is the biggest reason for the rapid rise in prices.

JPMorgan Chase of the United States predicts that as Bitcoin competes with gold for the status of an alternative currency, its price still has considerable room for growth in the long run.

However, some analysts say that market speculation is the main reason for the surge in the price of cryptocurrencies such as Bitcoin. This view believes that the price of Bitcoin has entered a bubble range and the market is facing the risk of a sharp drop.

Mark Cuban, a well-known American investor, recently said that the current cryptocurrency trading is similar to the Internet bubble. No matter how the price rises, there will always be experts trying to prove its rationality.

Eswar Prasad, a professor of trade policy at Cornell University in the United States, said that the price of Bitcoin is completely dependent on investor confidence. If 10% of investors choose to sell, the price of Bitcoin may drop to zero the next day.

Nouriel Roubini, a professor at the School of Economics and International Business at New York University, has always been pessimistic about the prospects of Bitcoin. He said that Bitcoin is not a currency, a unit of account or a means of payment, and does not have the function of a stable value storage tool; at the same time, Bitcoin is not an asset, has no intrinsic value, cannot bring income, and has no use value.

Roubini believes that the rise of Bitcoin is driven by speculation and that "it is not far from the time when this exaggerated bubble will burst."