I never expected that the most active asset in the recent capital market would actually be Bitcoin.
Today's price reached a historic high, breaking through 99,000 at its peak.
Bitcoin's sudden surge is definitely not a coincidence, because everyone knows Bitcoin has no value, everyone knows there are issues, but no one has a solution. A price of 100,000, that’s not the most exaggerated part.
The key point is that Bitcoin has become a blatant strategy in the game of great powers, an open card.
First, clarify one crucial question:
Why has Bitcoin continued to rise this time?
A direct reason is - before Trump came to power, he gave a big gift to cryptocurrencies like Bitcoin: relaxing regulations on virtual cryptocurrencies. Even to support virtual currencies, his own company started issuing cryptocurrencies.
Everyone knows that before the wise king came to power, the official U.S. attitude towards Bitcoin and virtual currencies was not very friendly, with strict regulations in place.
But this time, even during the campaign phase, it directly gave a 'get out of jail free' card to virtual currencies.
This is equivalent to releasing a signal to the market - go ahead and buy, I won’t care too much!
Once the signal was given, market expectations skyrocketed, and funds flooded into the virtual currency market like crazy, driving up the prices of cryptocurrencies led by Bitcoin. The price directly broke through 100,000, and options traders have set their targets at 150,000, confidence soared.
The question arises, why has Bitcoin, once seen as a challenge to the dollar's status, suddenly received strong support from Trump?
To understand this, we must start with the fundamental properties of Bitcoin. Many people believe that Bitcoin is a decentralized asset, independent of sovereign currencies, but in reality, Bitcoin plays a special role in the global monetary system. It is not entirely independent of the dollar system, but serves as an 'auxiliary tool' for the dollar, helping it maintain its position as the world's core currency. I mentioned this in my last article.
Against the backdrop of a dollar credit crisis and the dollar flooding the market, as an 'asset pool', it can absorb excess dollars, effectively preventing capital outflows.
On the other hand, Bitcoin also has the effect of suppressing other assets.
As a large amount of dollars flow into the market, there will inevitably be funds wanting to flow to other countries and assets. If Bitcoin can attract funds through price increases, then the flow of dollar capital will be altered.
As Bitcoin rises, everyone goes to buy, funds flow into virtual currencies, naturally not flowing into gold and the Chinese market.
Thus, Bitcoin has become a firewall for the dollar, keeping funds within the safe zone of the dollar.
Combining this with recent market price changes, you will find:
Bitcoin prices have been rising continuously:
The A-shares can't rise at all, glowing green everywhere. Today, the big A fell sharply again. Do you think the Z country government will come up with a trick this time? After all, according to Z country's great power dream, it has indeed affected and even hindered the future globalization process of the RMB! One must be cautious.
Bitcoin is the creation of the wise king.
