On 1 April, the price of bitcoin rose above $60,000 for the first time since 19 March 2,020.In the first 3 months of 2,021, the cumulative increase in the price of bitcoin exceeded 100% with a high return rate of 81%.In the past March, it has increased by 27%.
For bitcoin, loose monetary policy is beneficial and can significantly boost the encryption investment market.If monetary authorities implement a loose monetary policy, funds in the market may flow into the cryptocurrency market more frequently, changing investors' expectations of cryptocurrency prices, and thus causing fluctuations in cryptocurrency market prices.Therefore, the adjustment of macro monetary policy may affect the cryptocurrency market through the way of the convertibility of real currency and bitcoin.
According to the twenty-first century economic report, at present, the U.S. stock market has been highly foamed, and the government is planning to launch trillions of stimulus plans, resulting in a loss of direction of funds, because it is very dangerous for the stock price to continue to rise, but it is also challenging to find new assets for allocation.When the expectation of US dollar inflation rises, as a currency with a real limited supply, more investors will allocate bitcoin as an asset to hedge against currency risk, and the number of new investors entering the bitcoin market may increase significantly.Vetle Lunde, an analyst with Arcane Research, an encryption data company, revealed on his Weibo account that the organization already has more than 800,000 bitcoins, representing 4.3% of the current supply.
The long-term outlook for bitcoin is bullish, with Danny Scott, chief executive officer of a UK cryptocurrency exchange, posting on his website that the exchange's bitcoin balance is declining, a bullish indicator that could push bitcoin to a record high of $83,000.
However, according to the J.P. Morgan Research Report, the positive correlation between bitcoin and gold, the U.S. dollar and the S & P 500 index has been enhanced in the past year, coupled with the high actual volatility of bitcoin, bitcoin is more suitable as a risk asset rather than a hedging asset.For the participants of the cryptocurrency market, while focusing on the single market, we should pay more attention to the impact of the monetary authority's macroeconomic policy adjustment on the entire cryptocurrency market, and adjust the asset structure in a timely and reasonable manner.
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