Has Bitcoin Raised Over $ 50,000 In One Month? The biggest risk for the future remains a legal problem

On August 23, three months after Bitcoin fell due to a hurricane, the giants still jumped in and pushed Bitcoin to over $ 50,000 again in the blink of an eye. %, which increased by 50% last month.

Recovering from performance expectations, short-term investment and demand from trading companies, Bitcoin hit all-time highs of nearly $ 65,000 in April of this year. However, due to regulatory and environmental concerns, Bitcoin has fallen since May, falling below $ 30,000 at a time.

The giants reach out

Indeed, the Bitcoin market is now inextricably linked with the help of the giants.

On August 23 local time, US payments giant PayPal announced the launch of its UK cryptocurrency service, allowing UK consumers to buy, hold and sell digital assets from this week. . In addition to PayPal, last week United Wholesale Mortgage, the second-largest lender in the United States, also set an industry precedent by announcing its intention to accept bitcoin as rent payment.

Walmart is still hiring executives to develop its cryptocurrency ideas, and Amazon is hiring similar senior executives.

Liu Bin, director of the Financial Research Center of the Shanghai Free Trade Zone Research Center, said the adoption of cryptocurrencies by large companies is a continuation of the entry of companies. keys in the cryptocurrency industry since last year. At the same time, it shows that foreign investment in the cryptocurrency industry has started to expand, and the integration of investment, trade and storage has improved significantly.

Essential risk management

However, even after Bitcoin has strengthened from the $ 50,000 mark, the biggest risk facing the cryptocurrency market going forward remains a legal issue.

Now people from all walks of life in the United States have tightened their grip on cryptocurrencies, and US Treasury Secretary Yellen and Fed Chairman Powell have both discussed these issues. Gensler, chairman of the United States Securities and Exchange Commission, warned in August that he plans to follow the strictest controls in the cryptocurrency and loan markets.

The reason is that cryptocurrencies have many issues like high exchange rate volatility, consumer protection, and money laundering which can be risky. In the past, some countries, including China, have been affected by cryptocurrencies such as Bitcoin.

Traders should be wary that the rising cryptocurrency market could face a cold winter anytime before it is recognized by real regulators.