ZB Academy:Most institutions are still optimistic about Bitcoin

On the evening of February 22nd, Bitcoin suffered a short-term sharp drop, from a high of about $57,000 to $47,790. After that, there was still a slight rebound, but it is still in a downward trend. According to the official market data of the Chinese currency, Bitcoin is currently reported at $50,325, a 24-hour drop of 3.53%, and the 24-hour price range is $44,903 to $53,469.

In addition, according to data from the cryptographic indicator platform CryptoQuant, since Bitcoin began to rise to $58,000, Bitcoin miners have increased Bitcoin sales. In the past month, there have been several large outflows of Bitcoins from Bitcoin miners’ wallets. In mid-January, there were two large outflows of funds, namely 12,690 BTC and 12,570 BTC. On January 29, the miners transferred approximately 16,600 BTC from the wallet.

Although Bitcoin’s current market is not good, most institutions are still optimistic about Bitcoin.

On the 23rd, Michael Saylor, CEO of business intelligence company MicroStrategy, stated that Bitcoin is not for consumption, nor is it real money, but for saving. He predicts that the total market value of Bitcoin will exceed the total market value of gold in the future. On the same day, Jerome H. Powell, Chairman of The Fed (The Federal Reserve System), delivered a speech, reiterating that interest rates will be kept close to zero until full employment and inflation rise to 2%, which is expected to exceed 2% moderately for a period of time. This paragraph of speech is generally considered to be biased towards doves, which led to a rapid short-term rebound in Bitcoin prices.

This evening at UTC, payment giant Square stated that, after reviewing the annual data, Square sold $4.57 billion of BTC through Cash App in 2020, with a gross profit of $97 million for the year. Among them, in the fourth quarter of 2020, Square sold $1.76 billion in BTC through Cash App. And its CEO Jack Dorsey said that Square will “double bet” on Bitcoin’s promise. According to Square’s fourth-quarter earnings conference call held on Tuesday, Square once again purchased 3,318 BTC for $170 million. The total value of Bitcoin on the company’s balance sheet has reached $394 million. In addition, Dorsey also stated that the company added 1 million bitcoin customers in January.

At the same time, Fundstrat founder Tom Lee posted on Twitter that he set the target price of Bitcoin at $100,000 and said that Bitcoin is currently being “cheaply sold.” He stated that up to 50% of the correction is part of Bitcoin’s “DNA and history” and believes that this will not affect its fair value.

In addition, the 21st Century Business Herald, a well-known Chinese media, published an article at 9pm UTC. The article pointed out that the U.S. stock market is now highly bubble-inspired, and the U.S. government is planning to launch a trillion-scale stimulus plan, causing funds to lose direction. While the stock price continues to rise, it is very dangerous, but it is also challenging to find new assets for allocation. In this context, commodities and Bitcoin have entered the sight of financial investors to hedge against dollar risks. It can be seen that Bitcoin began to be valued by the financial market as a result of the failure of the US monetary policy and financial system. Investors deploy Bitcoin as an asset to hedge currency risks, reflecting the escalation of instability in the US financial system.

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.