The bond market is in turmoil, while Bitcoin is booming

The domestic bond market adjusted more sharply in the afternoon of November 17, and the decline of treasury bond futures widened. Affected by this, the diversified investment channel Bitcoin market hit new highs in November. According to data from OKCoin, the world's most active Bitcoin exchange, as of press time, the price of Bitcoin was 5234.9 yuan per unit. The price of Bitcoin has risen several times in recent days, and on the evening of the 16th, the price soared to 5499 yuan per unit, setting a new high in three years.

The result of the US election triggered a shock in the global capital market. The sharp rise in US bond yields also affected the global bond market, and China was not immune. After Trump's victory speech, China's 10-year treasury bond yield rose by nearly 10 basis points. The domestic market is currently cautious, and panic selling may occur at the slightest sign of change in money market interest rates. The bond market sentiment is tense, the real estate investment policy has been tightened again, and the yield of the wealth management market has been declining year by year due to the extension of leverage and mismatched maturities.

In today's economic environment, investors are pondering a question: where to invest their money. OKCoin analysts believe that owners of large amounts of assets can appropriately consider legal overseas allocations, while general investors can focus on investment channels with safe-haven asset attributes such as Bitcoin and gold.

As the most well-known application of blockchain technology in the world, Bitcoin is well-known in the investment circle for its decentralized characteristics. At first, it was just an investment channel in a niche field. In recent years, with the maturity of blockchain technology, the global acceptance of Bitcoin has reached a peak. Countries such as Japan, Russia, and the United Kingdom have successively improved their views on Bitcoin. Alexei Moiseev, Deputy Minister of Finance of Russia, said that with the development of Bitcoin in Russia, Bitcoin is no longer a threat to the Russian financial ecosystem at the current exchange rate. Therefore, the Russian Ministry of Finance plans to shelve the ban on digital currencies indefinitely. According to the Nikkei, the Japanese Ministry of Finance and the Financial Services Agency will hold a formal tax joint advisory group hearing at the end of the year. It is predicted that the meeting will reach a decision to stop imposing consumption tax on the purchase of Bitcoin. This is definitely great news for Japanese Bitcoin enthusiasts. There are more and more physical stores in Japan that accept Bitcoin payments. According to statistics from Tokyo Bitcoin Exchange ResuPress, as of September this year, there were 2,500 Japanese stores accepting Bitcoin payments, which is four times the number of last year. Due to the combined influence of global positive news and the instability of the international political situation, the global trading volume of Bitcoin hit a record high since 2011, reaching 47 million in the week of October 24 this year.

Whether from the central bank's third quarter monetary report or Trump's policy inclination to increase fiscal stimulus, there is a possibility of rising inflation expectations in the future. Investors should prepare for asset allocation as soon as possible. OKCoin founder and CEO Xu Mingxing also reminded investors that Bitcoin has the characteristics of price fluctuations and is not suitable for asset preservation. Risk-seeking investors can pay appropriate attention.