Bitcoin breaks through 10,000 RMB mark for the first time in eight years, setting a new high; gold and silver prices fall during the same period

The price of Bitcoin rose as high as $89 or 6.5% during the midday trading of the U.S. stock market on Monday, reaching a record intraday high of $1,449, surpassing the price of gold again , and rising for 10 of the past 11 trading days. Converted into RMB, the total amount is 10,062 yuan, which is the first time in eight years that Bitcoin has exceeded the 10,000 yuan mark .

As Bitcoin soared, spot gold fell below the $1,260 mark in the short term, with the decline widening to $13.70 or 1.1%, hitting a new low of $1,254.10 per ounce since April 11. Gold futures also fell 1%, breaking the 200-day moving average of $1,255 per ounce , and trading volume also increased rapidly in the short term.

The decline in silver prices was even greater. Spot silver prices fell by $0.38, or 2.2%, to $16.88 per ounce, the lowest since January 10, breaking through the $17 per ounce mark.

This round of gains is mainly driven by the regulation of various countries

Wall Street News mentioned last Friday that Bitcoin broke through the $1,300 mark and surpassed the price of gold, boosted by the news that the U.S. Securities and Exchange Commission (SEC) reviewed the Winklevoss brothers' Bitcoin ETF application . The SEC rejected two Bitcoin ETF listing applications, including those initiated by the Winklevoss brothers, in March, citing concerns that prices might be manipulated and investors' interests might be harmed.

CoinDesk believes that Japan's 10-year benchmark bond rate fell back to 0% last week for the first time since 2007, prompting investors to seek other high-yield alternative investment products. If Japan continues to adopt an ultra-loose monetary policy, the yen will continue to depreciate, which will help to raise the price of Bitcoin . Japan also officially recognized the legal status of Bitcoin as a payment from April 1, which is another positive signal.

Several bitcoin market data providers believe that the economic conditions and regulatory policies of Japan, China and the United States are closely related to the trend of bitcoin, mainly due to the huge volume of bitcoin transactions in the three countries. China ranks first in daily trading volume, accounting for about 50% to 98% of global bitcoin transactions; while Japan ranks first in exchange volume, accounting for about 41% of the global bitcoin exchange share, and the United States follows closely with 30.6%.

Analyst: Bitcoin is expected to reach $2,000 this year

Bitcoin prices have fluctuated greatly this year. It rose 20% in the first week of the new year, then plummeted 35% in February due to changes in China's regulatory policies. Since March, it has been hit twice by the SEC's regulatory decisions. After hitting the year's low of $933.94 on March 26, it rebounded 55%, and has risen nearly 60% this year.

Matthew Thompson, an analyst at Coinigy, believes in a research report that Bitcoin still has a 50% chance of reaching the $2,000 mark this year. But it mainly depends on the following three factors: regulatory policies of various countries, the creation and trading of other cryptocurrencies, and the battle for the expansion of the basic blockchain within Bitcoin.

Wall Street News also noted that Ethereum, another cryptocurrency, also hit a record high of $87.1 on Monday, having risen by at least $30 since last Thursday. This was mainly boosted by the review of the Bitcoin ETF, as the application for the Ethereum ETF to be listed on the New York Stock Exchange was also submitted in July last year. However, analysts believe that if other cryptocurrencies/projects such as Ethereum are popular, it will partially suppress investment enthusiasm for Bitcoin.