ZB Academy:Bitcoin price breaks through $52,000

After Bitcoin returned to the price of $50,000 on the 17th of this month, the price of Bitcoin fell back in the early morning of the 18th. After a few hours of rest, the price of Bitcoin has broken the $52,000 mark. However, as of press time, the price of Bitcoin has dropped. According to ZB.com’s official market data, Bitcoin is currently reported at $51,602, a 24-hour decline of 0.98%, and the 24-hour price range is $50,895 to $52,389.

Last week, the well-known electric vehicle and energy company Tesla announced a change in its investment policy and began to increase its holdings of cryptocurrencies and gold. The most notable of these includes a $1.5 billion investment in Bitcoin. Since last month, the price of Bitcoin has risen by 45%, 15% of which occurred after Tesla announced its investment in Bitcoin. Therefore, according to most analysts’ speculation, after the Bitcoin price broke through $52,000 on the 18th, Tesla’s Bitcoin value may be as high as $2.2 billion, and it may have obtained more than $600 million in unrealized gains from this investment.

Most analysts believe that one of the important reasons that pushed the price of Bitcoin to exceed $52,000 this time is that the well-known independent business intelligence company MicroStrategy announced on the evening of the 17th to raise $900 million to purchase more Bitcoin. MicroStrategy officially announced that evening that it would raise $900 million in the form of priority convertible bonds to buy more bitcoins. It is reported that this issuance is expected to end on February 19, 2021.

In addition, analysts believe that the important reason is that the executives of BlackRock, the largest listed investment management group in the United States, have disclosed that they have been involved in Bitcoin. According to CNBC’s 17th news, Rick Rieder, its chief investment officer of fixed income, revealed in the SquawkBox financial program that the company has begun to get involved in Bitcoin. It is worth mentioning that BlackRock holds 15.24% of MicroStrategy’s shares and is its largest shareholder. Previously, MicroStrategy’s massive purchase of Bitcoin gave BlackRock the opportunity to indirectly contact Bitcoin. As of January 21, at least two fund companies under BlackRock are focusing on the cryptocurrency field, and the company has approved at least two funds to invest in bitcoin futures products.

Today, J.P. Morgan stated in a new report to clients that Bitcoin will “continue to exist” as an alternative currency. But J.P. Morgan’s report also implies that Bitcoin is only regarded as an “economic performance” of major financial events in the post-epidemic era. The report reads: “With the rise of online start-ups and the expansion of digital platforms to the credit and payment fields, financial technology innovation and the growth in demand for digital currencies are the true portrayal of the epidemic.” According to J.P. Morgan estimates, there are currently 58 companies worldwide. Many of the fintech companies with a market value of more than $1 billion will soon compete with banks for “digital supremacy.” J.P. Morgan believes that no more “mainstream companies” will follow Tesla’s large-scale purchase of Bitcoin.

On the international front, the Deputy Governor of the Bank of England David Ramsden stated on the 18th that cryptocurrencies do not represent a systemic threat to the UK financial system, but may be consumer or behavioral risks.

About ZB Group

ZB Group was founded in 2012 with the goal of providing leadership to the blockchain development space and today manages a network that includes digital assets exchanges, wallets, capital ventures, research institutes, and media. The Group’s flagship platform is ZB.com, the industry leading digital asset exchange. The platform launched in early 2013 and boasts one of the world’s largest trading communities.

ZB Group also includes ZBG the innovative crypto trading platform, and BW.com, the world’s first mining-pool based exchange. Other holdings include wallet leader BitBank.

Industry intelligence and standards are headed by the recently launched ZB Nexus who embody the core values of ZB Group and open-source their reports and analysis for the public.

Learn more about ZB Group by visiting www.zb.com

The world’s leading cryptocurrency exchange: www.zb.com. ZB Academy is to provide prefessional blockchain insights.