After the price of Bitcoin exceeded $40,000 on Thursday, according to Bitstamp, Bitcoin has reached the $41,000 mark.



The chief researcher of Binance China Blockchain Research Institute believes that this time it is mainly due to the continued buying and increasing of holdings by American institutional investors that directly led to the surge in Bitcoin prices. In 2017, it was mainly the intervention of most domestic retail investors triggered by ICO that pushed up the currency price. Compared with the bull market in 2017, this year's market is called "institutional bull". Most of these major institutions come from traditional American financial institutions (pensions, asset management, insurance, enterprises, family funds, etc.).

According to Xu Tong, a senior analyst at Huobi Research Institute, the supply of Bitcoin will be halved this year, and its actual circulation will continue to decrease, and its price will rise. Its anti-inflation and value storage functions have been further recognized by the market, and participating players have also changed from mainly retail investors to mainly institutions.

It is reported that Grayscale Fund has a unique design for Bitcoin Trust. The Bitcoin Trust Fund can only be subscribed but not redeemed. Investors can only choose to sell on the secondary market of US stocks. This is equivalent to transferring the selling pressure of positions to US stocks, forming a situation where Grayscale Fund "only buys but does not sell" Bitcoin, which is undoubtedly a huge support for the price of Bitcoin.

It is worth mentioning that the popularity of the cryptocurrency market is also accompanied by huge risks. The official website of Bitcoin Home shows that in the past 24 hours, a total of 127,450 people liquidated their positions, with the liquidation amount reaching US$1.244 billion, approximately RMB 8.033 billion.



Xu Tong reminded that every time there is a surge, a large amount of profit will be accumulated. Market fluctuations caused by short-term profit taking are also normal phenomena. Investors need to pay attention to risk control.

On January 8, the Economic Daily also commented that at present, Bitcoin transactions are still in a gray area. With the development and launch of legal digital currencies in various countries in the future, the control or suppression of virtual currencies will increase, and the investment space for Bitcoin will be greatly reduced. Experts say that without the endorsement of a credible country or organization and the fact that it is not linked to any physical assets, when a sovereign country declares Bitcoin illegal, Bitcoin may become worthless.