The reason why Bitcoin is rising is that institutions and some big guys are hyping it up, and the regulation of Bitcoin is very unclear and usually rises and falls sharply, causing many speculators to enter the market.

The underlying reason behind the large-scale purchases of Bitcoin by traditional institutions is the changes in the global macroeconomic situation this year. On the one hand, due to the impact of the epidemic, the global economic recovery will slow down in the next year; on the other hand, the extremely loose monetary policy introduced by the central bank has pushed up inflation expectations in the financial market. In an economic environment of high inflation and low growth, in order to avoid damage to nominal principal and pursue higher returns, investors' demand for cash hoarding naturally evolved into the demand for gold and Bitcoin.

The interest in investing in BTC has increased significantly in many traditional industries, and the preference for institutional investment has also changed significantly. Digital assets are likely to be similar to gold. As assets, they are stored on the company's balance sheet. Bitcoin and gold also have There are some similarities, such as the existence of bubbles that are seen as resistant to traditional assets. Compared with gold, Bitcoin is still a very young asset. It is still not possible to conclude that a trend has formed that can resist gold. This Bitcoin bull market The cause is the global central bank's release of water. Bitcoin, as a safe-haven asset, has become a new choice for institutional funds. As mainstream institutions gradually inject funds, Bitcoin's status as "digital gold" will become more and more obvious. The fluctuations in the crypto market are also affected by many factors. At present, it is difficult to say whether it is stabilizing or becoming more volatile.

As far as regulation is concerned, the regulatory outlook for Bitcoin remains unclear. Whether Bitcoin can be widely promoted and trusted is also related to whether the regulatory environment is reasonable. In the long run, cryptocurrency’s legal compliance trends will benefit its future development. Therefore, when investing in Bitcoin, you must correctly understand the investment orientation of Bitcoin. For novice investors, you can try to invest a little bit in Bitcoin to promote your understanding of Bitcoin; but if you want to achieve the so-called freedom of wealth by investing in Bitcoin, it is unrealistic. At the same time, investors are not recommended to increase leverage for currency speculation. The price of Bitcoin is highly volatile. In market research, it is often found that some investors increase their leverage by 10 times, 20 times or even 100 times, which brings huge investment risks.

After the price of Bitcoin exceeded US$20,000 in December last year, a large number of new investors began to pour in. The most obvious thing is that compared with November, the market trading volume of Bitcoin increased significantly in December; secondly, the price increase of Bitcoin began to increase significantly. In January, Bitcoin rose from 10,000 US dollars to 20,000 US dollars, and half a month from 20,000 US dollars to 20,000 US dollars. US$10,000 rose to US$30,000, and from US$30,000 to US$40,000 in just one week. These signs indicate that the main investment forces in the market may undergo structural changes, and former institutional investors may turn to small and medium-sized investors. Different market forces have a large impact on market sentiment and price movements.