Last year, Bitcoin encountered Waterloo, and this year there is a great momentum for the king to return. On April 11th, the price of Bitcoin broke through $30000 at around 8:30, an increase of over 5%
Last year, Bitcoin encountered Waterloo, and this year there is a great momentum for the king to return. On April 11th, the price of Bitcoin broke through $30000 at around 8:30, an increase of over 5%. However, it began to decline afterwards. As of the time of the reporter's press release, Bitcoin was quoted at $30400.
According to Interface News, as of April, the cryptocurrency Bitcoin maintained its strong trend since the beginning of the year. At the end of March, Bitcoin briefly broke through the $29000 level and then remained volatile at the $28000 level. According to Wind data, in the performance of major global assets from 2023 to date, Bitcoin's intra-year growth rate has reached 71.47%, ranking first in the world, in stark contrast to its ranking last to last in 2022.
According to CaiAssociated Press on the 11th, according to CoinGecko data, the current price of Bitcoin is $30400, an increase of 96% from last year's low.
Since the Federal Reserve accelerated the pace of interest rate hikes in 2022, cryptocurrencies led by Bitcoin have fallen into a decline, falling from a historical high of $69000 to a low of $15000. Currently, Bitcoin prices have rebounded nearly twice from the bottom, but the gap is significant compared to historical highs.
What is the reason behind the resurgence of Bitcoin, which was "abandoned" by funds last year?
According to the reference news, according to the report of Nihon Keizai Shimbun on April 7, Bitcoin is attracting a large amount of funds in the crypto asset (virtual currency) market.
The report points out that the reason why Bitcoin can attract a large amount of funds is because it has the characteristic of no need for hedge asset support, which has once again been sought after by investors. To obtain a new Bitcoin, you must "mine" yourself. It cannot distribute new currency based on holdings, like dividends on stocks or bonds.
Meanwhile, the bankruptcy of small and medium-sized banks such as Silicon Valley Bank in the United States has also pushed up the price of Bitcoin. The report states that the value of Bitcoin is based on trust in blockchain issuance and management mechanisms. Compared to virtual currencies such as stable coins that require financial institutions to participate in their issuance, the value of Bitcoin assets is less likely to be compromised.
Despite calls from cryptocurrency enthusiasts to firmly hold on to Bitcoin, some economists have been sneering at it. An economist recently proposed that abandoning Bitcoin may be beneficial for world prosperity.
Dieter Wermuth, an economist and partner at Wermuth Asset Management, stated in a report released last week that without cryptocurrency, the world economy would perform better because cryptocurrency is a "negative" investment at the cost of social costs, which draws funds from overall economic growth.
Since its first launch in 2009, Bitcoin has gone from an almost worthless asset to nearly $68000 in 2021. But Wermuth believes that not all investors can enjoy returns; On the contrary, this has created an uneven distribution of wealth that benefits insiders in the encryption industry.
For example, according to a media report in 2021, 0.01% of Bitcoin investors held 27% of Bitcoin in circulation at that time, with a value of approximately $232 billion.
Upstream News Comprehensive Beijing Business Daily, Reference News, Science and Technology Innovation Board Daily, Interface News, etc
Editor: Yang Sihai
Editor in Chief: Wu Zhonglan
Reviewed by: Feng Fei
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