Bitcoin price hits three-year high

Source: BeiBitcoin bull market is still going on. On December 21, the price of Bitcoin broke through the 5,600 mark, with the highest price reaching 5,686 yuan per unit, setting a new three-year record high.

Compared with other investment products, Bitcoin has performed particularly well this year, rising 142% from the lowest price of 2,351 yuan per unit at the beginning of the year to 5,686 yuan per unit. In this regard, Xiao Lei, chief researcher of Golden Wallet, said that the continued rise of Bitcoin this year is due to the gradual development of blockchain technology, which has driven the expected value of Bitcoin. On the other hand, due to the impact of inflation expectations and the depreciation of the RMB exchange rate, the demand for Bitcoin in the Chinese market has increased, which is similar to the continued rise of many commodities.

He said that at present, since the entire Bitcoin pool is only more than 10 billion US dollars, the actual circulating Bitcoin is only 700 to 800 million US dollars, which is equivalent to a listed company with a market value of less than 40 billion yuan, and investors all over the world can speculate on it. This can easily cause sharp fluctuations in short-term prices, and it can be easily hyped up, especially when some good concepts emerge, the price of Bitcoin may rise rapidly.

However, Xiao Lei said that blockchain technology is currently in the actual development and application stage, concept speculation has gradually cooled down, and support for Bitcoin is also limited. Therefore, the Bitcoin market may see further increases next year due to the expansion of basic demand, but the extent of the increase may not be as large as this year. It is more likely to rise and fall, and volatility will increase.