Driven by the rise of bitcoin, cryptocurrency has also risen.
According to coin coin data, as of 6:30 a.m. Beijing time, XRP has risen by more than 46% in the past 24 hours, while XLM, sky, pivx and QSP have risen by more than 30%.
Bitcoin fund rose more than 45% in November
Funds that focus on bitcoin investments also soared, with GBTC funds up more than 8% last night.
Payment giant admission leads to bitcoin in short supply?
Trading volume tripled on the exchange where PayPal worked
Since PayPal announced that it would provide bitcoin trading services, bitcoin has been booming. Many voices in the market believe that the admission of payment giants has caused bitcoin to be in short supply, thus promoting the rise of bitcoin.
PayPal works with Paxos, the provider of cryptocurrency infrastructure, for hosting and trading.
The latest data from coingecko show that the trading volume of itbit on Paxos exchange has been in the same range since September last year, but since PayPal launched bitcoin service recently, the trading volume of the exchange has more than tripled.
Dan Morehead, founder and chief investment officer of Pantera capital, commented that customers of PayPal and square have bought new bitcoin supplies in all markets, which has driven up the price of the currency.
Brian Kelly, founder and chief executive of hedge fund bkcm, said the bigger fintech effect was about new demand - square and paypal were making it easier for first-time traders to buy through mainstream apps.
Chris Weston, an analyst at pepperstone, a brokerage firm, believes that the story that bitcoin is being accepted and used is true and that supply is not enough to keep up with demand. PayPal announced on October 21 that it would allow U.S. customers to buy and sell bitcoin, bitcoin cash, Ethereum and letcoin from their accounts. Its a step-by-step program, but given PayPals global presence, the market sees it as a big step forward.
Jacob skaaning, fund manager of ark36, a digital currency hedge fund, said the recent surge in bitcoin was mainly due to a lack of liquidity in supply, while bitcoin trading volume on trading platforms fell due to excessive demand.
Analysts: investors need currency depreciation hedging tools
The analyst also noted that while this is a long-term factor, bitcoins infrastructure is set for appreciation - for every 210000 blocks mined, miners rewards are reduced by 50%. Its a form of quantitative austerity. In theory, unless there is a change, the last bitcoin will be produced in 2140.
*Fidelity Investments has launched a bitcoin fund with a minimum investment of US $100000, which fully demonstrates the participation of passive funds. The greyscale bitcoin trust, which now has nearly $10 billion in total assets, also provides a way for more mature investors to use bitcoin. In fact, the longer-term reason lies in changes in regulatory levels, which means institutional funds can be invested in cryptocurrencies, and the rise in institutional participation seems to be the main difference between the current momentum and the rebound in 2017.
Others are less optimistic
Asset classes with a history of more than 10 years will not replace those with a history of 5000 years, buchwa said in a report to clients on Monday. Of course, the former can supplement the latter, but it cannot replace it.
Bailey, governor of the Bank of England, has also said that it is difficult to see the intrinsic value of bitcoin and worry about its use as a means of payment. There may be good reasons to hold bitcoin, but investors must understand that the price fluctuation is very large.
Source: Ren Hui, editor in charge of China Fund News_ NBJ9607