ZB Academy：Most analysts believe that Bitcoin prices will continue to grow
Starting from last night, the price of Bitcoin has started a stronger round of gains, once breaking through $19,000. According to the official market data of China Currency, as of press time, Bitcoin is currently reported at $19,159. The 24-hour increase was 1.66%, and the 24-hour highest price was 19,412 US dollars.
What is the reason behind the rise in the price of Bitcoin? Many people want a clear answer to this question. So far, it is difficult to find a unified theory. Since mid-October, the price of Bitcoin has soared from $11,000 to $19,000. Although the price is several hundred dollars lower than the historical high, the market value of Bitcoin recently broke through 345 billion dollars, setting a record. Since 2017, more bitcoins have been mined and put into circulation. For a large number of market observers, the reason for this round of gains is obvious: Bitcoin has more buyers, and these buyers have more abundant funds, which indicates that the price of Bitcoin will continue to grow. But there is also a reasonable and different view that there is an abnormal situation that temporarily restricts supply. This view makes investors question the endurance of this pull. For these reasons, more investors want to find out. The huge demand for information makes the media have some reports on Bitcoin dynamics every day.
On the 23rd of this month, Sean Lennon, son of well-known musician and former member of The Beatles band John Lennon, published his views on Bitcoin on Sunday’s Orange Pill podcast. He believes that Bitcoin “gives people a power that has never been granted.” Sean said that if people own gold, they will have to put it in sacks. After all, someone can steal gold from them. But Bitcoin “surpasses the real world”, which means that people have full agency rights to their wealth and complete autonomy. As long as they can remember their own keywords, they can freely control them.
On the 24th of this month, JPMorgan analysts stated in the “Flow & Liquidity Report” that the pace of institutional investment in Bitcoin in this quarter was faster than in the third quarter. May play a greater role than Commodity Trading Advisors in price changes. This report was written by Nikolaos Panigirtzoglou, Mika Inkenen and Ekansh Agarwal. They believe that institutional investors are viewing Bitcoin as a long-term investment. They cited Grayscale Bitcoin Trust’s continuous expansion of Bitcoin investment in the fourth quarter to prove this point, and the company’s customers are mainly institutional investors. In the third quarter, foreign retail investors using Square purchased a total of approximately $1.6 billion worth of bitcoin through Square’s Cash App, which is more than three times the investment in Grayscale’s bitcoin products. However, in the current quarter, Grayscale Bitcoin Trust Fund invested in Bitcoin three times as much as the third quarter. There is currently no Bitcoin purchase data for Square customers.
Also on the 24th of this month, a subsidiary of SBI Holdings, a leading Japanese financial services company, launched a cryptocurrency lending service that will allow users to deposit bitcoin and earn interest. According to the company’s announcement, the company’s “VC Trade Loan” service allows users to deposit bitcoin into SBI VC Trade, earn interest at an annual rate of 1%, and include taxes. The announcement also stated that the company will not charge account management fees or membership fees. The company stated that although the service was launched by Bitcoin, it plans to expand it to other cryptocurrencies, including XRP and ETH.
Today, the strong rise of Bitcoin brought about by this mechanism that may trigger inflation and the global consensus on it are gradually rising，which is exactly what Bitcoin advocates have hoped to see since the birth of Bitcoin during the worst period of the global financial crisis more than a decade ago.
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, as well as exchange brands ZBM, ZBX and Korea’s Bithi.
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.