Since April, bitcoin prices have suddenly risen by more than 20%, although it has since been reported that China may have classified virtual currency mining as a phase-out industry, but bitcoin has not been hit and prices have continued to rise above $5,000. Some people believe that bitcoin has skyrocketed, mainly because investors lost confidence in the irresponsible monetary policy of the US Federal Reserve (FED) and turned to embrace bitcoin.
Coindesk quoted that Bitcoin was quoted at $5,310.11 on Thursday morning (11th) Taiwan time, and soared 28% from $4,135.18 on the 2nd.
MarketWatch and Nasdaq reported that bitcoin unexpectedly soared in April, and there were many reasons for this. Travis Kling, founder and chief investment officer of Ikigai Asset Management, speculated that the reasons behind it were related to the sudden changes in central bank attitudes. The Fed was more domicile than expected, followed by the European Central Bank (ECB) and the Bank of Japan (BOJ), and the US and global central banks were pan-political. This is the new world in which we live. Political and monetary policies have become increasingly entangled everywhere, and everyone uses virtual currency to hedge against irresponsible monetary and fiscal measures.
Kling said that quantitative easing (QE) combined with a high fiscal deficit is the largest currency experiment, but the central bank will never win. Fed turned to turn pigeons, and some people speculated that it was related to Trump’s political pressure. This kind of change makes the virtual currency supporters more enthusiasm to centralize technology, emphasizing that the virtual currency is transparent and free from human interference, and it is an excellent hedging tool.
Naeem Aslam, chief market analyst at Think Markets, shares a similar view. He said that he does not believe that the legal currency will disappear, but the central bank’s handling of monetary policy and government debt is high, increasing the attractiveness of Bitcoin