At one point, the value of Bitcoin fell more than 20%, but what will the market look like next year?

The value of Bitcoin has recreated the “roller coaster” market. Market risk aversion hit the US stock market on Friday and spilled over into the cryptocurrency market. Bitcoin fell 20% on the day to $ 43,000 and on Sunday it rebounded to around $ 49,000. Bitcoin Price List $ 47,505.71.

Liu Dian, a special researcher at the Chinese Institute at Fudan University, told the 21st Century Business Herald that the signal that the early end of Fed Chairman Powell's debt consolidation was a key boost for the government. Bitcoin plunge. From a profound perspective, the toughening of the global financial environment and the gradual tightening of financial regulations in many countries have had an impact on economic sentiment, allowing short periods of time to be spent in dangerous assets.

Liu Dian pointed out that if the Fed raised interest rates in the future, it would have a major impact on world markets. First, capital outflows from new markets, and second, the cost of technology products will be affected. Third, the short-term nature of cryptocurrency markets such as Bitcoin has increased significantly.

Place of premium value-added services Bitcoin.

Bitcoin prices have changed recently. The Fed's expectation of higher inflation reduced the likelihood of holding assets like Bitcoin. In hindsight, the price of Bitcoin fell sharply as the Fed raised interest rates in 2017 and 2018, and monetary policy benefited many countries as the new krone pushed the economy higher. . "Excellent", noted. 67802 on November 9 of this year. The dollar is at an all time high.

Capital Diva CEO Kiana Dania believes Bitcoin value volatility is still active during this time and is expected to return as the appeal picks up and hits new highs in the new year.

Regarding the high volatility of the price of Bitcoin, Liu Dian pointed out that when Bitcoin created by private companies further materializes the material of the financial, it widens the place of great respect because the more the giver of this treasure by the work.

A recent report from JP Morgan Asset Management pointed out that cryptocurrencies are not a good asset for retailers or financial institutions, given their volatility and lack of hedging interact with other assets. However, Bitcoin prices have risen by over 7,200% over the past five years, which has eased some skepticism about the cryptocurrency's negative comeback.

After the spread in early 2020, many companies started buying Bitcoin. "These companies have driven up the value of Bitcoin and encouraged more traders to buy Bitcoin, making it a great investment in the face of speculation." Philip Gradwell, chief economist at Chainalysis, a blockchain data platform.

Is the currency digitization model unstoppable?

While some investors are excited about Bitcoin, governments in many countries may apply tighter controls on Bitcoin and other cryptocurrencies, which could affect Bitcoin's long-term performance for some. “Because the hype for cryptocurrencies is unique, many countries have strict rules or restrictions on cryptocurrency trading outside,” Liu Dian said.

Currently, countries like China, Bolivia, and Colombia ban cryptocurrency trading, and India, Russia, and the United States are still studying the possibility of regulating the cryptocurrency market. At the same time, many countries are developing digital advantages, and China is one of the most important countries in the world in this region.

Liu Dian pointed out that the most important difference between a digital bank and a bitcoin bank and other digital private accounts that have worked in China and other countries is that the bank Digital bank is the average currency and Bitcoin is digital currency. Greater use of assets and liabilities can reduce financial risks that would be significantly offset by the current distribution.

Liu Dian said that "As more and more countries continue to push the test of legal digital currency, the understanding of the proprietary assets of digital currencies, including Bitcoin, will be diluted to some extent." Dian.

Whether it's Bitcoin or digital banking, we need to get back to a better understanding of cryptocurrencies. in the future. In the long run, Liu Dian believes that the transformation of the digitalization of money brought about by future cryptocurrencies "cannot be done successfully" as human life is entering a critical period of digital exchange change.