Beijing Business Daily News (Reporter Liao Meng) Bitcoin has stood up again during this Dragon Boat Festival holiday. On June 25, a reporter from the Beijing Business Daily found that after two months, the price of bitcoin, which ranked first in the market value of Cryptocurrency, has recently broken through the US $30000 mark again, breaking through the highest US $31000, a new high since mid April 2023
Beijing Business Daily News (Reporter Liao Meng) Bitcoin has stood up again during this Dragon Boat Festival holiday. On June 25, a reporter from the Beijing Business Daily found that after two months, the price of bitcoin, which ranked first in the market value of Cryptocurrency, has recently broken through the US $30000 mark again, breaking through the highest US $31000, a new high since mid April 2023.
According to CoinGecko, a global currency website, Bitcoin trading prices have gradually risen from below $26500 in the past seven trading days, breaking through the $30000 mark and fluctuating sideways, reaching $31185.22 on June 24th. As of 18:10 on June 25th, Bitcoin was trading at $30694.83, a daily increase of 0.02%.
Since 2023, Bitcoin has shown a significant rebound trend. From January to April 2023, Bitcoin continued to rise for several months, while in May 2023, it fell by nearly 10%. According to further inquiries by Beijing Business Daily reporters, it is not common for Bitcoin prices to increase by more than 10% in a single day during the year. In the current round of Bitcoin's rise, on June 21st, Bitcoin's daily increase exceeded 10%.
The reason for this is still driven by news factors. On June 21, Federal Reserve Chairman Powell attended the House Financial Services Committee for questioning. When Senator Maxine Waters asked whether the issuer of Stablecoin should obtain the permission and supervision of the Federal Reserve, Powell responded: "Regulators regard the payment of Stablecoin as a form of currency and believe that the central bank should supervise it. The ultimate source of monetary credibility is the central bank. The Federal Reserve should play a strong federal role in determining the future of any form of currency (including Stablecoin)."
In addition, Powell also mentioned that "as an asset class, Cryptocurrency such as Bitcoin seems to have lasting power. It would be a mistake for the Stablecoin problem to become the weakness of the Federal Reserve". Powell's view was also interpreted by the market as a favorable factor for Cryptocurrency. Affected by this news, the trading price of Bitcoin has significantly rebounded.
Some analysts said frankly that this situation also reflects the uncertainty of Cryptocurrency, including Bitcoin, driven by information factors. Pan Helin, co director and researcher of the Research Center for Digital Economy and Financial innovation of International Joint Business School of Zhejiang University, said that the Federal Reserve has been exploring the regulatory path of Cryptocurrency, including trying to replace bitcoin by issuing digital currency by the central bank. However, judging from the reality, it may be difficult for the Stablecoin of the Federal Reserve to form pressure on the special currency. The move is interpreted as that the Federal Reserve will relax the supervision of Bitcoin and other digital currencies, which also makes speculators look like the short-term market of Bitcoin. Cryptocurrency trading is still high-risk.
Although compared with the second half of 2022, the Cryptocurrency trading market has become less turbulent and the transaction price has also rebounded, the overseas financial regulatory authorities have not relaxed their control over Cryptocurrency. The U.S. Securities and Exchange Commission (SEC) has successively filed lawsuits against the two large Cryptocurrency exchange, Coinbase and Coinbase. According to the information disclosed by the SEC, the Cryptocurrency exchange should register the tokens it trades as securities, and the exchange should also complete the registration information of the roles of the exchange, dealer and clearing house.
Under the background of strong supervision, the current increase of Cryptocurrency may also be related to the frequent layout of Cryptocurrency by traditional financial institutions recently. On June 21, Valkyrie, a Cryptocurrency fund management company, submitted an application for exchange traded funds (ETFs) based on physical bitcoin transactions to the SEC. This is also another financial giant applying for bitcoin ETFs this year, following BlackRock, WisdomTree, Invesco and other companies. Mitsubishi UFJ Financial Group, the largest bank in Japan, also began to arrange and plan to issue global Stablecoin.
"From the trend, there is no doubt that overseas regulatory attitudes towards Cryptocurrency are tightening. It should be noted that Cryptocurrency itself is to decentralize and avoid regulation. At the same time, because of its large market value, it is difficult for speculators to give up bitcoin as the ultimate tool, so it may be difficult for regulators to reverse speculative enthusiasm in the short term. The participation of financial regulators and traditional financial institutions is expected to gradually change To improve this situation Pan Helin said.
Wang Peng, an associate researcher of the Beijing Academy of Social Sciences, further pointed out that as time went by, the concept and regulatory action of regulators on Cryptocurrency were constantly changing, so as to avoid the risk of Cryptocurrency market transmitting to the traditional financial field and causing financial risks. In this process, Cryptocurrency will continue to experience fluctuations, rising or falling sharply under the guidance of information factors. Therefore, for ordinary users, they should see the short-term increase of Cryptocurrency and stay away from such illegal financial activities.
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