Signs the bull market is here to stay
Yesterday, many media reprinted the latest article about Bitcoin from Xinhua News Agency. The most important point of this article is to talk about the following two points of view:
1. Recently, Xinhua News Agency has continuously issued articles focusing on the "currency circle" and the purpose is to prevent the "air currency" from harvesting the hard-earned money of the masses.
2. If only bitcoins are traded as virtual commodities, ordinary people have the freedom to participate in transactions at their own risk.
The first point of view basically continues the consistent thinking of my country's supervision: that is to pour cold water on the market when the market bubble gradually expands and remind the masses to be rational. This approach was used in the early development of A-shares. During a big bull market in the 1990s, facing the frantic influx of the masses, the People’s Daily published an article criticizing the stock market, which ignited the fuse of that bull market crash.
This technique is also often performed in the currency circle, so it is reassuring to see the article so clearly pointing out this point of view. In my opinion, this does not mean further suppression of supervision, but a normal reminder of supervision to market participants.
The second point of view surprised me a bit. The surprise is that in my impression, this is the first time since 94 in 2017 that regulation has raised concerns about Bitcoin, and ordinary people have the freedom to participate in transactions. On the one hand, this point of view implies that the supervision recognizes the value of Bitcoin, and on the other hand, it implies that the supervision recognizes some rationality of Bitcoin transactions.
This article undoubtedly pointed out that the real purpose of this round of supervision to "suppress" digital currency transactions is to remind everyone to pay attention to risks, rather than completely denying the value of some value coins like Bitcoin.
Reading this article reminds me of what Yao Qian, director of the Technology Supervision Bureau of the China Securities Regulatory Commission, said in an interview a few days ago when he talked about the digital renminbi:
"We can imagine that if the central bank's digital currency runs directly on blockchain networks such as Ethereum, then the central bank can use their BaaS services to provide central bank digital currency directly to users without resorting to intermediaries. . . . ".
After reading this passage, I immediately thought, if the digital renminbi runs directly on Ethereum, wouldn’t it be the same as the current US dollar stablecoin USDT, USDC, DAI, etc.? Then the digital renminbi can freely realize barrier-free and cross-border circulation and use all over the world. And if this is the case, the digital renminbi is different from these U.S. dollar stablecoins, because it is a legal currency, unlike stablecoins whose reputation is guaranteed by collateral, so its credit will be better than stablecoins.
Combining these two articles, the high-level attitude is very clear. For the value of digital currency, Bitcoin and Ethereum are undoubtedly highly recognized: Bitcoin publicly recognizes the freedom of transactions, and Ethereum It is even considering using it to issue digital renminbi.
After reading these, as ordinary investors, we don't have to worry too much. Moreover, these regulatory statements also remind everyone: in our investment allocation in the future, the allocation of Bitcoin and Ethereum is very important, because they are approved by the supervision. For investors who are new to this field, such a reminder is only good, not bad.
The market as a whole is still in the process of resting and healing its wounds these days, but there are still many interested giants outside the market who are eager to enter this market.
On June 2, Reuters reported that a subsidiary of Standard Chartered Bank is planning to launch an encrypted trading platform in the United Kingdom and Europe, which will be aimed at institutional clients. In layman's terms, this news means that Standard Chartered Bank, like other banking giants that have entered this field, is preparing to open an exchange to provide digital currency trading services for institutional investors.
In this round of the market, institutions are the key force to promote the development of the market. Even in the face of such a sharp drop, Standard Chartered Bank also announced its entry. It can be seen that there are still a large number of institutional investors outside the market who are interested in entering the market.
This doesn't look like a sign of the end of the bull market at all.
