BTC’s journey to the mainstream: Wall Street, government agencies and payment giants are key promoters
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February 19, 2021Bitcoin’s unstoppable upward momentum has created a myth in the capital market. According to CoinDesk’s data, Bitcoin reached a maximum of US$50,584.85 in intraday trading on February 16, which is the first time in history that it touched US$50,000. The highest point in history. According to the data on the CoinDesk website at 14:00 on the 17th, Bitcoin has fallen from a high of US$50,000, but still maintains a price of US$49,679, and is within easy reach of US$50,000.
In the second week of February 2021, Tesla, Mastercard and Bank of New York Mellon entered Bitcoin successively. The blessing of mainstream institutions has boosted Bitcoin’s cumulative increase of nearly 70% since the beginning of the year. According to the price trend of Bitcoin displayed on CoinDesk, Bitcoin was only at a price level of USD 10,000 at the beginning of October 2020. After jumping to the platform of USD 20,000 in December last year, it suddenly accelerated. In time, it more than doubled, reaching an eye-popping $50,000.
However, according to foreign media reports, the Bitcoin market is still full of obvious bullish sentiment. According to Bloomberg News, Morgan Stanley’s investment company Cointerpoint Global is studying whether Bitcoin can be an appropriate choice for investors. Nexo CEO Tranchev said: “Whether (Tesla CEO) Musk, Mastercard or Morgan Stanley enters the market, the current market sentiment and momentum cannot be ignored. Many people are upset. I couldn’t get on this Bitcoin Express.”
However, historically, the characteristics of Bitcoin price ups and downs are very obvious, which is full of risks for investors. A little carelessness can lead to a loss. Even if it has reached a high of $50,000, the market has views on the future trend of Bitcoin and is still extremely optimistic.
However, the legitimacy of Bitcoin’s identity has always been suspected by global financial official decision-makers, who believe that it has caused chaos to the existing international financial order.
What cannot be ignored is the attitude of the new US Treasury Secretary Yellen, who has always held a negative attitude towards Bitcoin. On January 25, Yellen’s appointment was considered bad news, which caused cryptocurrencies to plunge across the board that day, and Bitcoin dropped more than 10% at its lowest point in the day. On January 19th, Yeah, who was the former chairman of the Federal Reserve, participated in the “appointment hearing” held by the US Senate Finance Committee. She expressed her views on cryptocurrency. She said that the United States should be aware of emerging tools for terrorist financing. There are opportunities for cryptocurrencies to be misused by illegal financing, and the government will need to review the ways in which their use can be restricted and ensure that money laundering activities are not conducted through these channels. Yellen’s statement made Bitcoin fall for three consecutive days.
And another international financial policy decision-making figure, former President of the European Central Bank Draghi, also has a disinterested attitude towards Bitcoin. Almost at the same time as Yellen, she also stated that Bitcoin is a highly speculative asset that involves money laundering activities, and a regulatory consensus on Bitcoin needs to be reached at the global level.
China clearly promises that Bitcoin is not a legal currency. Although China does not prohibit individuals from participating in the purchase and sale of Bitcoin in law, it clearly prohibits the establishment of Internet platforms to provide transactions for Bitcoin and other virtual currencies, and it does not allow virtual currencies and digital currencies. exchange.
On December 5, 2013, the People’s Bank of China and other five departments jointly issued the “Notice on Preventing Bitcoin Risks”, stating that Bitcoin is not issued by the monetary authority, and it has no monetary properties such as legal compensation and compulsion, which is not true Currency. The “Notice” prohibits financial institutions and payment institutions from conducting bitcoin-related businesses and reminds individuals to prevent risks, but it does not expressly prohibit individuals from participating. In 2017, the Central Bank and other 7 departments issued the “Announcement on Preventing the Risk of Token Issuance Financing”, prohibiting the establishment of virtual currency trading platforms in China and prohibiting the exchange between virtual currency and legal currency. Subsequently, large-scale virtual currency trading platforms in China have been shut down.
In an interview with the Global Times reporter recently, Qu Qiang, assistant to the director of the Institute of International Monetary Studies at Renmin University of China, said that domestic supervision of Bitcoin and other virtual currencies is very strict. Domestic financial institutions are prohibited from participating in Bitcoin business, and personal transactions are personal actions. , But we must pay attention to market risks and avoid unnecessary losses.
Author/ Translator: Jamie Kim
Bio: Jamie Kim is a technology journalist. Raised in Hong Kong and always vocal at heart. She aims to share her expertise with the readers at blockreview.net. Kim is a Bitcoin maximalist who believes with unwavering conviction that Bitcoin is the only cryptocurrency – in fact, currency – worth caring about.
