Bitcoin prices rise, risks increase! What will happen next —
Recently, the price of Bitcoin has continued to rise, once reaching $99,000 per coin, setting a new historical record. As of November 28, the price of Bitcoin has maintained around $95,000, with a global total market capitalization of approximately $2 trillion, making it the eighth largest asset by market value globally. In January of this year, the price of Bitcoin had once fallen below $40,000 per coin. In less than a year, its price has more than doubled. What are the reasons for the significant rise in Bitcoin prices? What will happen next? What issues should we pay attention to?
Regarding the surge in Bitcoin prices, Yu Jianing, co-chairman of the Blockchain Special Committee of the China Communications Industry Association and honorary chairman of the Hong Kong Blockchain Association, stated that this is the result of multiple factors working together. From a macroeconomic perspective, global economic uncertainty and changes in monetary policy are important factors driving the rise in Bitcoin prices. Adjustments to the Federal Reserve's monetary policy, along with a heightened expectation of liquidity easing in the market, have made risk assets favored by investors again. Additionally, the US elections have further boosted market optimism about the future of Bitcoin.
Compliance and regulatory issues pose a significant challenge. "Globally, the uncertainty of regulations on crypto assets remains high. If regulatory policies in certain countries or regions are adjusted, such as strengthening the approval of Bitcoin spot ETFs, it can easily trigger dramatic market fluctuations," Yu Jianing stated.
All along, our regulatory authorities have been clear in their stance, identifying cryptocurrency-related business activities as illegal financial activities. They have maintained strict regulatory measures against cryptocurrencies from various aspects, including cracking down on Bitcoin mining and cutting off the funding chain for cryptocurrency speculation. In August of this year, the Supreme People's Court and the Supreme People's Procuratorate jointly issued an interpretation regarding several issues related to the application of laws in handling money laundering criminal cases, listing virtual asset trading, including Bitcoin, as one of the methods of money laundering, further increasing the crackdown on illegal transactions related to cryptocurrencies.
"Overall, as the enthusiasm for Bitcoin and the cryptocurrency market rises, new risks and uncertainties also increase. Investors should respond to the current market with a rational and prudent attitude, closely monitor regulatory dynamics and market changes, and avoid blindly following trends."
