Xinhua News Agency Financial Observation: What is the momentum for Bitcoin's new round of rise?

Xinhua News Agency, Washington, June 17 (Reporter Yang Chenglin) Recently, the price of a single Bitcoin broke through the $9,000 mark, and the increase this year has exceeded 150%, which has once again attracted the attention of market investors. Analysts believe that the recent "embracing" of cryptocurrencies by well-known American companies has triggered this round of Bitcoin's rise. At the same time, the intensification of international trade tensions has strengthened the capital market's risk aversion, which has boosted the rise of Bitcoin.

The participation of famous enterprises triggered a rise in

Data from the U.S. company "Bitcoin Base" showed that the price of Bitcoin broke through the $9,000 mark around 00:00 Eastern Time on the 16th and continued to rise, reaching around $9,350 at 8:00 on the 17th, the highest level since May last year.

Analysts believe that this round of Bitcoin rise is mainly due to the good news that well-known companies are participating in the cryptocurrency market, which has increased market heat and strengthened investors' confidence in cryptocurrencies.

The 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 to launch a cryptocurrency next year. After the news was released, the price of Bitcoin began to rise for several days.

Crystal Keck, chief business officer of blockchain company Bolt, believes that Bitcoin broke through $9,000 under the stimulus of the news. Ryan Steinberg, CEO and co-founder of Arca Asset Management, said that when major large companies participate in the cryptocurrency market, cryptocurrency will be integrated into the trend of the times in a unique way.

This year, many well-known American companies have launched cryptocurrency businesses. AT&T recently announced that it will accept customers to use cryptocurrency to pay online bills, becoming the first American mobile communications service provider to do so. Banking giant JPMorgan Chase announced early last month that it would cooperate with Microsoft to expand the blockchain platform, and previously launched its own cryptocurrency "JPM Coin".

Brett McGonigal, CEO of Capital Link International, said in an interview with US media recently that if institutional funds begin to touch Bitcoin, the price of Bitcoin will be much higher.

Safe-haven properties attract attention

Since the beginning of this year, the U.S. capital market has continued to fluctuate under the impact of multiple factors such as the escalation of trade disputes and the downward revision of economic growth expectations. Bitcoin has shown the characteristics of a safe-haven asset, attracting the attention of many investors.

Data shows that the price of Bitcoin has increased by more than 150% this year. Especially since the beginning of May, Bitcoin has performed more impressively in an environment where market confidence has fluctuated sharply, with prices breaking through the $6,000, $7,000, $8,000 and $9,000 levels in succession. Its potential as a safe-haven asset has once again attracted market attention.

Safe-haven assets refer to assets that can hedge risks and avoid losses as much as possible when risk events occur. Safe-haven assets often show "opposite fluctuations" in price to relatively high-risk assets, such as the "seesaw" market between U.S. stocks and U.S. bonds.

A report recently released by SFOX, a US cryptocurrency trading platform, showed that there was a "near-perfect negative correlation" between the price of Bitcoin and the S&P 500 index in May, highlighting the public's intention to use Bitcoin to hedge global market risks.

Steinberg believes that the recent international trade tensions have contributed to the rise of Bitcoin. McGonigal said that as investors look for some kind of safe haven or hedging tool, their funds are flowing into Bitcoin.

Anthony Pompliano, founding partner of Morgan Creek Digital in the United States, believes that Bitcoin plays a role in hedging against instability in the global market, which is the core reason why institutional investors hold cryptocurrencies.

The future trend remains to be seen

Despite the recent impressive performance of Bitcoin, investors still have different views on its future market trend. Joshua Frank, co-founder of the digital currency analysis platform "TheTIE", said recently that the market's 100-day average confidence index for Bitcoin has remained positive for 120 days since it turned positive in mid-February this year, and discussions on Bitcoin on social networks have become more heated. If this confidence and enthusiasm can be maintained, Bitcoin will continue to appreciate.

Lars Seyir Christensen, chairman of the US blockchain network company Concordium, believes that the Bitcoin market is highly volatile and has low trading volume, and it does not take much effort to push its price up or down by thousands of dollars.