Welcome the biggest ally Yellen! Bitcoin approaches a record high of $20000

category:Finance
 Welcome the biggest ally Yellen! Bitcoin approaches a record high of $20000


Bitcoins rapid return to record highs after last weeks sharp fall seems to confirm some analysts claim that yellenley is like a dime.

Market participants generally believe that the recovery of the U.S. economy next year will depend on the final size of the fiscal stimulus plan, and if Yellen is appointed as Treasury Secretary, he will increase the easing of fiscal policy and expand government spending. Some observers have pointed out that people familiar with Yellen understand that when she was the chairman of the Federal Reserve, her position was relatively pigeonish. As finance minister, she should be able to cooperate with the Federal Reserve and be market-friendly. If necessary, the Treasury Department may cooperate with the Federal Reserve to intervene in the market.

In an interview last week, omike Novogratz, founder and CEO of Galaxy digital, a long-term cryptocurrency like commercial bank, said in an interview last week that Yellens overall dove bias should benefit hard assets such as gold and bitcoin.

Novogratz believes that everyone should allocate 2% to 3% of their net worth. He pointed out that in the past bitcoins record high was mainly driven by retail investors, but this time it was the admission of large institutions. During this round of high currency prices, because high net worth individual investors, hedge funds and real institutions are slowly entering the market, the participation of big players and the strengthening of supervision should ease the fluctuation of currency price, but it will not completely eliminate the fluctuation.

Anthony pompliano, a cryptocurrency industry guru and co-founder of Morgan Creek digital, a hedge fund focused on blockchain technology and cryptocurrency, last week stressed that Yellen had not shied away from the policy of printing money generously, especially in response to the economic crisis. That could push the dollar down, creating more demand than assets that can store value, such as the special currency. Whether the dollar is really oversold or not, worries about devaluation will drive bitcoin up. Therefore, pompliano predicted that:

Yellen could be bitcoins greatest ally in the next four to eight years. She has never been dissatisfied with any money printing opportunity. She has never been intimidated by high inflation.

Given that the epidemic has caused unemployment to remain high for some time in the United States, pompliano expects that after taking office, Yellen will start to launch their own monetary stimulus tools to reduce unemployment.

Some commentators pointed out that the slump was also affected by recent reports that China had seized a large number of cryptocurrencies. On Thursday, it announced the final judgment of the plustoken pyramid scheme, the first in China with blockchain technology packaging and digital currency as the trading medium. According to the relevant ruling, the public security organs seized part of the digital currencies of plustoken platform, including 194800 bitcoins with a market value of more than 3.2 billion US dollars and 833000 Ethereum.

In September this year, the peoples Court of Yancheng Economic and Technological Development Zone issued a judgment of first instance on this case, demanding that the seized digital currency shall be dealt with in accordance with the law, and the funds and proceeds obtained shall be confiscated according to law and turned over to the state treasury. The second instance ruling of the intermediate peoples Court of Yancheng City, Jiangsu Province, announced on Thursday rejected the appeal and upheld the first instance ruling.

Some cryptocurrency industry insiders commented that the ruling seems to imply that the Chinese government has sold the collected digital currency, which should be sold in the open market. This has been the driving force behind the recent sharp fall in currency prices. Although the recent plunge of bitcoin has eliminated some speculative bubbles, Morgan chase reported on Friday that momentum traders such as commodities and other quantitative funds have played an important role in the recent crash of bitcoin, and momentum traders have led to a further decline in bitcoin. JPMorgan expects the flow of funds from the gray scale bitcoin trust to be an important indicator of investing and tracking bitcoin prices. If the inflow of funds into the fund decreases, it means that momentum traders continue to shrink, and the currency price may fall further. Source: Wall Street news editor: Yang Bin_ NF4368

Some cryptocurrency industry insiders commented that the ruling seems to imply that the Chinese government has sold the collected digital currency, which should be sold in the open market. This has been the driving force behind the recent sharp fall in currency prices.

Although the recent plunge of bitcoin has eliminated some speculative bubbles, Morgan chase reported on Friday that momentum traders such as commodities and other quantitative funds have played an important role in the recent crash of bitcoin, and momentum traders have led to a further decline in bitcoin.

JPMorgan expects the flow of funds from the gray scale bitcoin trust to be an important indicator of investing and tracking bitcoin prices. If the inflow of funds into the fund decreases, it means that momentum traders continue to shrink, and the currency price may fall further.