Behind Bitcoin’s rise to the $23,000 mark

Poison_Xiaodu, Katyusha Farm, Moscow, Russia

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Bitcoin has risen more than 175% since 2020. Market analysis shows that the surge in Bitcoin is mainly due to a boost in market demand, with many investors taking a look at Bitcoin’s ability to make quick profits and its potential to hedge against inflation risks in the future.

As of 17th, CoinDesk network data showed that the value of Bitcoin has risen 13.68% in 24 hours to $22,107.

A recent report released by PricewaterhouseCoopers shows that in 2020, more and more institutional investors entered the cryptocurrency market, including JPMorgan, Standard Chartered, Citigroup, Deutsche Bank, DBS Banking Group, etc., and many institutions have even begun to regularly underwrite this asset class.The Bloomberg reported, according to a survey conducted by Bank of America in the first week of December, near 15% of fund managers said that Bitcoin is the third most crowded transaction, only after long technology stocks and shorting the dollar. The fund managers hold $534 billion in assets. 

Bullish institutions continue to sing Bitcoin, cryptocurrency financial institutions wary of pervasive fraud! In the second half of the year, the big bankers with hot money have no viable opportunity to invest. “We’ve got a new watershed,” Antoni Trenchev tweeted, wary of the possibility that retail users will leave after selling their stock to take profit. “Bitcoin’s next target support level is $30,000. The media and retail investors can participate properly because they are clearly absent from A sumptuous banquet. 

In the environment of the quantitative easing of the U.S. dollar, on the one hand, the vigorous buying by institutions, and on the other hand, retail investors entered the market one after another. Bitcoin rushed through $20,000 to reach a new high.

Bitcoin rose inexplicably. Is hot money, nowhere to speculate in virtual currency? Beware of pervasive scams at this time! The second half of the year, hot money and fund from big investors  have nowhere to go, many surged to speculate gold and bitcoin. Also, beware of retail investors pulling out after the year.

The bitcoin is actually of no value. It is important to note that Bitcoin is not linked to gold, this means the rise can be linked to the chaos in the world. 

The value of bitcoin is that there is actually no built-in value. It is not linked to the value of gold. However, bitcoin’s rise does link to the turmoil in the world.

(The article only represents the author’s personal opinion)

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Disclaimer: This article only represents the author’s view. Gnews is not responsible for any legal risks.

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