Share two latest news with you.
On March 7, Hong Kong-listed company Meitu issued an announcement stating that the company had purchased approximately US$40 million in BTC and ETH. In this regard, Meitu founder Cai Wensheng stated that Meitu has thus become the first Hong Kong listed company to purchase BTC digital currency and the world’s first listed company to use ETH as a currency value reserve. The engine of this bull market came from institutional investors in Europe and the United States who bought bitcoin last year, especially Grayscale and MicroStrategy. These institutional investors mainly choose Bitcoin as their buying target. I think the main reason is that Bitcoin has the highest consensus, the best liquidity and the lowest risk.
But in an earlier article, I estimated that this situation will change in the future, and the value of Ethereum will eventually be recognized by institutional investors. Although Grayscale also holds and buys Ethereum, Ethereum is not its main purchase target, and Grayscale’s purchase of Ethereum cannot form a demonstration effect. And now the company that carried the banner of buying Ethereum finally appeared, and surprisingly it was a Chinese company. I was neither surprised nor surprised seeing this message. Surprisingly, I didn’t expect institutions to enter Ethereum so quickly. I originally thought that Ethereum would be recognized by institutional investors until the second layer of expansion was implemented and even 2.0 had significant progress.
Because of the current state of Ethereum, many institutional investors may worry that it will be very variable in the future and dare not enter the market. Unexpectedly, Chinese companies entered the market boldly and publicly expressed their optimism about Ethereum. I fully agree with Meitu’s views on Ethereum in the statement.
On the other hand, I am not surprised by this, because the old players in the currency circle know that Cai Wensheng entered the digital currency very early. As early as the 1CO tide in 2017, Cai Wensheng began to buy digital currency with personal funds. So today he led his listed company to buy digital currency is not impulsive, but has been well thought out. The main significance of Meitu’s actions are as follows:
1. Create a demonstration effect for domestic investors, especially investors in the traditional financial sector. This is to further ferment this effect in the traditional financial circle after Dan Bin bought Bitcoin.
2. Set a demonstration effect for domestic and overseas listed companies, and it is very likely that more domestic and overseas listed companies will enter the market.
3. Bring a demonstration effect to global institutional investors. Meitu’s actions will definitely be transmitted overseas and affect overseas investors, prompting them to re-examine the value of Ethereum.
4. The communiqué issued by Meitu at this time may end this adjustment ahead of schedule, which will further ferment market sentiment. Based on this situation, I think the current prices of Bitcoin and Ethereum may be the cost prices of many institutional investors who will enter the market in the future. I still think that for them, their expectation is at least a double increase, so the future space of Bitcoin and Ethereum can be seen. I haven’t looked at the market value ranking for a long time. I opened CMC today and found that Uniswap’s market value has jumped to 8th and surpassed the link. I think this is an important node in the development of the bull market to the present.
In an earlier article, I estimated many times that the ranking of the top ten in this round will be significantly shuffled, and DeFi tokens (not counting the link) will rush into the top ten. I originally thought that Aave would be the first to enter, but I didn’t expect Uniswap to grab the top spot and make the top ten first. The top ten coins now are: Bitcoin, Ethereum, USDT, BNB, ADA, Polkadot DOT, Ripple XRP, UNI, LTC, LINK. Among them, XRP, LTC and ADA are also likely to be squeezed out of the top ten one after another.
The next market may develop like this: After this adjustment is over, under the leadership of Bitcoin and Ethereum, the market has risen again, and new DeFi tokens have rushed into the top ten, and this round of bull market has gradually entered the middle. ; Then the top 20 ranking shuffled, more DeFi tokens rushed into the top 20, the bull market entered a climax; finally, the market sentiment was extremely inflated, and Bitcoin and Ethereum led the entire market to make a final fight and reached its peak.
Of course, the above deduction is just my personal conjecture. It is impossible to estimate when each stage will come and how long it will last. But at least so far, these signs indicate that the next stage of this bull market will be sufficient. We must not throw away the chips and become bystanders. We must firmly hold the chips and become a part of this big game.
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.