Ignoring the central bank's suppression, Bitcoin is going crazy again. Two major reasons have helped push the price of foreign exchanges to a new high

Bitcoin has seen a crazy rise in recent days. The domestic price once exceeded 8,000 yuan, and the price denominated in US dollars has even hit a record high. Why is it that despite the repeated talks between the People's Bank of China and domestic Bitcoin platforms, the price of Bitcoin continues to rise after several sharp drops?

Why has Bitcoin recently moved higher? Two possible reasons.

First, the U.S. Senate approved last week the appointment of Mick Mulvaney, a South Carolina congressman, as the director of the White House Office of Management and Budget (OMB). Mick is the first U.S. congressman to accept Bitcoin donations and helped initiate the Blockchain Caucus to develop cryptocurrency-related policies.

Secondly, the market expects that the "Winklevoss Bitcoin ETF (tentative trading code: COIN)" is expected to be approved on March 11 to become the first Bitcoin ETF in the United States, so it enters the market in advance to secure a position.

The approval of Mulvaney’s appointment on February 16 was a big boost for Bitcoin. Mulvaney said in April 2014 that Bitcoin could eventually affect the dollar and U.S. monetary policy.

Peter Thiel was the only Silicon Valley entrepreneur who publicly supported Donald Trump during last year's U.S. election. The venture capital firm he invested in, Founders Fund, is the financial backer behind the Bitcoin payment startup BitPay, Inc.

In an exclusive interview with the New York Times last month, Thiel said he would not be a member of the Trump administration's executive team and would continue to stay in Silicon Valley as an entrepreneur to assist Trump in the future.

When Trump announced his nomination of Mulvaney to take over as director of the White House Budget Office late last year, he said that the U.S. national debt was approaching $20 trillion, and under Mulvaney's leadership, American taxpayers would regain confidence in the country's finances. Mulvaney was a major supporter of the 2013 fiscal cliff (which temporarily shut down the federal government at the time).

Last week, the highest price of Bitcoin reached $1,220. The day before the 2016 US presidential election, Bitcoin closed at $702.5. In other words, the dollar-denominated Bitcoin has risen by more than 70% since Trump won the election. At the same time, due to the recent positive news from the United States, the price difference between Bitcoin and foreign currencies has inverted

In addition, the spot price of gold rose by 1.62% to $1,255 per ounce last week, and hit a record intraday high since November 11, 2016. Bitcoin (blue line) has the momentum to surpass gold (red line) again:

According to a report published on Caixin Weekly on February 15, 2016, Zhou Xiaochuan, governor of the People's Bank of China, said in an interview that paper money will eventually be replaced, and the digital currency issued by the central bank will not affect the existing money supply, creation mechanism and monetary policy transmission. Its anti-counterfeiting and security depend on the protection of a variety of information technology means.

Andrew Haldane, chief economist of the Bank of England (BOE), who was named one of the world's most influential economists in 2014 by The Economist, said in 2015 that if the economy deteriorates further, the introduction of a negative interest rate policy (NIRP) alone may not stimulate consumption because people will withdraw cash from banks; in order for negative interest rates to truly play a stimulating role, electronic wallets similar to Bitcoin technology should be used to replace paper money. In this way, if people do not want to see their deposits shrink, they will spend more.

As pointed out in April last year, Huo Dan once said that when quantitative easing also loses its effectiveness, it may be time to seriously think about Bitcoin and blockchain.