In the past two weeks, Bitcoin has continuously surged, even rising by 10% in a day, with the highest price reaching $87,931. The sudden rise of Bitcoin is definitely not a coincidence; if you think this surge is just a normal price fluctuation, you are oversimplifying the matter. In fact, behind it is a new round of major power games, a collusion between U.S. politics and capital to maintain the U.S.'s position as the financial leader.
First, let's clarify a key question: Why did Bitcoin surge this time? A direct reason is – the support from the 'understanding king': loosening cryptocurrency regulations, aiming to make the U.S. a 'Bitcoin superpower.' This is equivalent to sending a signal to the market – feel free to buy virtual currencies, I won't interfere too much! Once the signal is released, market expectations soar, and funds flood into the virtual currency market, driving up the prices of virtual currencies led by Bitcoin. But as everyone knows, before the 'understanding king' came to power, the U.S. government's attitude towards Bitcoin and virtual currencies was not very friendly, with strict regulations in place.
Why has the virtual currency, which was previously not recognized by the U.S. government, suddenly received strong support from the 'understanding king'? I think we should first analyze it from the basic attributes of virtual currencies. Many people believe that a typical virtual currency like Bitcoin is a decentralized currency, not a sovereign currency, independent of sovereign currencies, and not affected by the general monetary system. But in reality, this is not the case. The actual attribute of Bitcoin is that it is an asset pool for holding dollars, an auxiliary tool for maintaining the global core currency dominance of the dollar, especially when the dollar devalues and floods the market, the role of this tool becomes particularly pronounced. What is the role of this tool?
On one hand, Bitcoin serves as a pool for absorbing the constantly over-issued excess dollars; on the other hand, Bitcoin also has the effect of suppressing other assets.
Because once a large amount of U.S. dollars flows into the market, there will inevitably be funds wanting to flow out to other countries and assets. If Bitcoin can attract funds through price increases, then the direction of U.S. capital will be altered. If everyone buys Bitcoin, they can prevent U.S. dollar funds from flowing out to other countries' assets and bulk commodities. Especially now, the two biggest enemies of the dollar – RMB and gold. Bitcoin has become a protective wall for the dollar, keeping funds within the safe zone of the dollar.
So, when the 'understanding king' promotes Bitcoin, it is equivalent to releasing expectations intentionally to let Bitcoin soar. When Bitcoin rises, funds flow into virtual currencies, naturally diverting them from gold and our markets. Therefore, Bitcoin is a chess piece in the 'understanding king's' war against the dollar. The current strategy of the U.S. is to firmly control the pricing power of Bitcoin and other tokens, turning Bitcoin into a new form of digital gold, supporting the dollar while also adding a tool for harvesting.
