On October 16, the price of Bitcoin broke through the $60,000 mark and approached $63,000, the highest price since May this year. Ethereum broke through $3,900, approaching an all-time high.
Data from CoinGecko shows that the total market value of cryptocurrencies has exceeded US$2.6 trillion, a record high. Previously, the total market value of cryptocurrencies reached an all-time high of US$2.55 trillion on May 12. But then started to shrink for more than two months to US$1.25 trillion on July 21, a drop of more than 50%, and then the total market value gradually picked up.
As the cryptocurrency market has soared, the U.S. stocks' blockchain sector, which has continued to decline recently, has risen, too. Canaan Technology has gained 5.22% during the day, and Bit Digital has soared by 10%. Riot Blockchain rose 5.86%, the sector began to change before the opening of the US stock market.
For the Chinese market, after suffering the most stringent regulatory blow in history, Bitcoin has continued to rise. Market data shows that Bitcoin's weekly moving average has continued to rise for three consecutive weeks. Since this round of adjustment, the low point of $28,800 has increased by more than 100%. Bitcoin has now moved towards its all-time high of $64,443.
Supervision is launched, and Bitcoin is officially "de-Chinese"
On September 24, the People's Bank of China and its eleven departments issued the "Notice on Further Preventing and Disposing of the Risk of Hype in Virtual Currency Transactions." On the same day, the National Development and Reform Commission issued the "Notice on Regulating Virtual Currency "Mining" Activities."
The severity of these two documents has reached the "highest in history." Wu Hui, a practitioner who has been following the regulatory situation for a long time, told Jiemian News, "The level of detail and the number of departments involved in the regulatory documents this time are the most, even the 17-year ban on ICO documents is not comparable."
This time, the two-pronged supervision of “virtual currency” was carried out. The National Development and Reform Commission took the lead in maintaining a high pressure on virtual currency mining, and the central bank took the lead in conducting precise crackdowns on virtual currency transactions.
Affected by this, Bitcoin mining has all withdrawn from China. Following the strict inspections of virtual currency mining in the former major mining provinces such as Inner Mongolia, Xinjiang and Sichuan, Zhejiang and Jiangsu provinces have newly joined the wave of mining supervision and adopted strict IP inspections. Address to accurately block the access of the mining machine to the mining pool.
On the other hand, the trading platforms with the largest trading volume in the world all announced their "withdrawal from Mainland China." More than 10 trading platforms, including Binance, Huobi, and Ouyi, have all issued announcements, or they will cease operations or will clear mainland users.
As the mainland cleared out cryptocurrency mining and Exchanges, the Bitcoin Panic Index had reached extreme fear, reflecting the pessimistic sentiment of the market. However, since the regulatory documents were issued again on September 24, the market has not caused huge fluctuations. And the reason behind this, Wu Hui explained: "The domestic community is constantly losing the pricing power of Bitcoin."
He said that since the regulatory policy on May 19 involved "combat Bitcoin mining", the market has panicked. After the Bitcoin price plummeted by USD 10,000 from a high of USD 50,000, it was already close to the low point at the beginning of the year. The Chinese funds that left the market during this round of plunge will not come back, and will no longer have an impact on the market thereafter.
And Wu Hui believes that the rise of Bitcoin is related to US funds.
JPMorgan Chase CEO says Bitcoin is "worthless" but blockchain is cool
According to a report from CNBC website on October 11, Jamie Dimon, chairman and CEO of JPMorgan Chase, is not a fan of Bitcoin, the cryptocurrency with the highest market value. "I personally think Bitcoin is worthless, but I don't want to be a spokesperson," Dimon said during a virtual appearance at the Institute of International Finance Meeting. "I don't care. It makes no difference to me. I don't think people should smoke cigarettes."
He added that the bank would not stop its customers from buying and selling the digital currency despite his negative feelings.
"Our clients are adults, they disagree. That's what makes markets. If they want access to buy and sell bitcoin ... we can give them legitimate, clean-as-possible access," he said.
JPMorgan Chase said in February 2019 that it would launch a digital currency called JPM Coin. In October 2020, the company established a new department for blockchain projects. In August of this year, the company began to allow its wealth management clients to trade cryptocurrency funds.
However, Dimon's own anti-cryptocurrency stance is firm. Recently, he told Jim Van der Hey, CEO of the American news website AXOS, that Bitcoin "has no intrinsic value." Although he believes that Bitcoin will exist for a long time, he "always believes that Bitcoin will be deemed illegal somewhere, just as China has deemed it illegal, so I think it is a bit like fool's gold."
Dimon also told Van der Hey that he believes that "regulators will supervise it vigorously."
SEC finally approves Bitcoin futures ETF
On October 16, CoinDesk reported that after a meeting of five members of the US Securities and Exchange Commission (SEC), they approved the fund management company ProShares on Friday to launch the first listed Bitcoin futures ETF in the United States.
The company submitted relevant issuance documents on Friday afternoon. The issuance documents show that the product will be based on bitcoin futures contracts instead of bitcoin spot, with a management fee of 0.95%, and will be traded on the NYSE Arca exchange under the trading code BITO.
Foreign media reported that the BITO issued by ProShares may be the first in a series of ETF products based on Bitcoin futures. Valkyrie Investments, Invesco and VanEck may obtain wholesale distribution of their own Bitcoin futures ETFs this month. Galaxy Digital, AdvisorShares, Bitwise, BlockFi, and ARK Investment Management (under Ark) may be approved for product launches in November and December.
Because in the U.S. market, Bitcoin-traded open-end index funds (exchange-traded funds, ETF) mean that Bitcoin can be securitized in the form of physical guarantees. Investors only need to purchase the fund shares issued by the institution. Indirectly hold the exposure of the corresponding investment target. In the US trading market, ETF-related trading volume accounted for 30%. Therefore, hedge funds and investment banks including the recently popular Ark Capital have all joined the wave of applications.
It is reported that there are currently more than 80 applications for Bitcoin ETF submitted to the SEC.
For the cryptocurrency community, the SEC officially increased the exposure of traditional funds to cryptocurrencies through the Bitcoin futures ETF, which means that Bitcoin is recognized as a compliant commodity and asset, which is a great benefit to cryptocurrencies. Before the SEC's release this year, companies lined up to submit bitcoin-related ETFs eight years ago, but none of them were approved.
For traditional funds, the most important thing is to have a suitable entry channel. The key to this round of Bitcoin's breakthrough in the trillion-dollar market value is the Bitcoin-like custody fund launched by traditional institutions represented by Gray Capital, and Coinbase The compliant deposit channel provided has given cryptocurrency new growth space,
However, professional financial institutions have a large demand for financial services. Compared with other assets, such as commodities, corporate bonds, etc., the exposure to Bitcoin is obviously not rich enough. For Wall Street in the United States, Bitcoin is the more important one. ETF. Before the United States, South America and Canada took the lead in launching Bitcoin-related ETFs.
With the SEC's adoption of the Bitcoin futures ETF, the price of Bitcoin has also rushed to nearly $63,000, which is only one step away from the historical high.
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