It just so happens that leveraged stocks Tesla bought Bitcoin digital gold and then "out of the circle"

Tesla purchased 1.5 billion U.S. dollars in Bitcoin, and Bitcoin has accelerated its entry into the mainstream asset allocation vision of the United States. On the evening of February 8, U.S. time, a document submitted by Tesla to the U.S. Securities and Exchange Commission (SEC) showed that Tesla had purchased $1.5 billion worth of Bitcoin as a strategic investment in January this year. The document mentions that the background of this purchase of Bitcoin is that Tesla updated the company's investment policy in January 2021 to make it more flexible, with the purpose of further making full use of cash that does not need to maintain liquidity to obtain more diversification and maximization s return. And the company said that in the near future, on the basis of legal permission, it will begin to accept Bitcoin as a payment method for products. Therefore, Tesla may become the first large automaker to accept Bitcoin as a payment. This news pushed the price of Bitcoin to soar in the short-term, with an increase of more than 13% in one hour, and recently hit a new high, approaching $50,000 (the highest price is more than $49,000). We believe that Tesla and Musk’s personal preference for Bitcoin is expected to form a demonstration effect, that is, Bitcoin’s “digital gold” has increasingly become a market consensus, so in the future it is expected to drive more US industry giants to use Bitcoin As an important asset allocation. Unlike some time ago, Microstrategy (MSTR) and other US stocks listed companies financing to purchase bitcoin as a strategic reserve, the market expectations of Tesla and Musk’s industry status and influence are huge, and the allocation of bitcoin assets and the promotion of bitcoin The use of currency as a payment method is bound to bring certain strategic pressure and potential impact to other industry giants in the US stock market.

CME launched Ethereum futures, North America's first Bitcoin ETF was approved in Canada, and cryptocurrency assets accelerated their access to traditional financial markets. The Chicago Mercantile Exchange (CME) launched the Ethereum futures contract on February 8 with a trading volume of more than 30 million US dollars on the first day. According to official CME news, the code of its Ethereum futures contract is ETH, and it is settled in US dollar cash according to CME Group's Ethereum Reference Exchange Rate (BRR). It is traded 5 days a week, and the trading hours are from 5 pm Central Time in the United States. At 4 o'clock on the afternoon of the day, a contract is worth 50 ETH. According to Decrypt, the Bitcoin Exchange Traded Fund (ETF) of the asset management company Purpose Investments has been approved in Canada. In recent years, U.S. companies have tried to obtain Bitcoin ETFs (Exchange Traded Funds) through the U.S. Securities and Exchange Commission (SEC), but they all ended in failure, while Canadian Bitcoin ETFs have progressed relatively smoothly.

Last week's market review: Chainext CSI 100 rose 25.15%, and payment transactions performed the best in the segment. From the perspective of segmented sectors, payment transactions, Internet of Things & traceability, entertainment and social networking, basic enhancement, storage & computing, pure currency, AI performance are better than the ChainextCSI100 average, 87.50%, 81.99%, 46.66%, 47.76% , 59.40%, 26.24%, 58.6%; the performance of commercial finance and basic chain is lower than the average of ChainextCSI100, which is 18.11% and 18.28%.

Risk warning: Uncertainty in regulatory policies, and the development of blockchain infrastructure is not up to expectations.

1. Tesla bought Bitcoin and digital gold "out of the circle"

Tesla bought 1.5 billion U.S. dollars in Bitcoin, and the price of Bitcoin soared. On the evening of February 8, U.S. time, a document submitted by Tesla to the U.S. Securities and Exchange Commission (SEC) showed that in January this year, Tesla had purchased $1.5 billion worth of Bitcoin as a strategic investment. The document mentions that the background of this purchase of Bitcoin is that Tesla updated the company's investment policy in January 2021 to make it more flexible, with the purpose of further making full use of cash that does not need to maintain liquidity to obtain more diversification and maximization s return. And the company said that in the near future, on the basis of legal permission, it will begin to accept Bitcoin as a payment method for products. Therefore, Tesla may become the first large automaker to accept Bitcoin as a payment. This news pushed the price of Bitcoin to soar in a short-term, with an increase of more than 13% in one hour, and recently hit a new high, reaching nearly $50,000 (the highest price is more than $49,000). We believe that Tesla and Musk’s personal preference for Bitcoin is expected to form a demonstration effect, that is, Bitcoin’s “digital gold” has increasingly become a market consensus, so in the future it is expected to drive more US industry giants to use Bitcoin As an important asset allocation. Unlike some time ago, Microstrategy (MSTR) and other US stocks listed companies financing to purchase Bitcoin as a strategic reserve, Tesla and Musk’s industry position and influence brought about the market expected changes are huge, the allocation of Bitcoin assets and the promotion of Bitcoin The use of currency as a payment method is bound to bring certain strategic pressure and potential impact to other industry giants in the US stock market.

CME launched Ethereum futures, North America's first Bitcoin ETF was approved in Canada, and cryptocurrency assets accelerated their access to traditional financial markets. The Chicago Mercantile Exchange (CME) launched the Ethereum futures contract on February 8 with a trading volume of more than 30 million US dollars on the first day. According to official CME news, the code of its Ethereum futures contract is ETH, and it is settled in US dollar cash according to CME Group's Ethereum Reference Exchange Rate (BRR). It is traded 5 days a week, and the trading hours are from 5 pm Central Time in the United States. At 4 o'clock on the afternoon of the day, a contract is worth 50 ETH. This is the second crypto asset futures contract launched in the mainstream financial market after CME launched Bitcoin futures in December 2017. According to Decrypt, the Bitcoin Exchange Traded Fund (ETF) of PurposeInvestments, an asset management company headquartered in Toronto, has been approved in Canada, covering the following regions: British Columbia, Alberta, Saskatchewan, Manny Toba, Quebec, New Brunswick, Nova Scotia, Prince Edward Island, Newfoundland and Labrador, Northwest Territories, Yukon and Nunavut. In recent years, U.S. companies have tried to obtain Bitcoin ETFs (Exchange Traded Funds) through the U.S. Securities and Exchange Commission (SEC), but they all ended in failure, while Canadian Bitcoin ETFs have progressed relatively smoothly. Bitcoin ETF is different from Grayscale's GBTC and other closed-end Bitcoin funds. Bitcoin ETH is continuously issued, which will help these funds/trusts to trade at a price relative to the net asset value. ETFs are similar to mutual funds in that they directly track selected securities, but they are listed on the exchange and can be traded like stocks. The approved Bitcoin ETF will be traded on the Toronto Stock Exchange under the trading code BTCC. The fund is only used to buy bitcoin, and investors can buy bitcoin with Canadian dollars or US dollars. Canadian regulators approved a Bitcoin fund of 3iQ in 2019 and also approved the company's Ethereum fund last year. These funds allow investors to buy shares in the company's Bitcoin or Ethereum, but they cannot enter and exit at any time, and investors can buy in for a limited time. Although there are some restrictions, there is no doubt that cryptocurrency assets are landing on traditional financial markets at an unprecedented speed.

2. Related news from governments: Australian regulators say they are open to Bitcoin ETFs

Australia: Australian regulators say they are open to Bitcoin ETFs. The Australian Securities and Investments Commission (ASIC) has clarified its position on Bitcoin ETFs and stated that it is open to Bitcoin ETFs as long as investors are protected by appropriate rules. Regulators have stated that Bitcoin ETFs are possible, and for any product quoted on the Australian exchange market, specific markets need to have appropriate rules.

Kyrgyzstan: The Central Bank of Kyrgyzstan plans to implement an encryption license system. The chairman of the Central Bank of Kyrgyzstan (NBKR) stated that the central bank plans to grant licenses to cryptocurrency exchange operators to purchase and sell cryptocurrencies. He said that the license system will eliminate the risk of fraud in crypto exchanges. Prior to the news on January 6, the Central Bank of Kyrgyzstan planned to introduce two encryption bills to combat terrorist financing and fraud. It mentioned that local exchanges need to abide by the legal framework and tax system to combat crypto fraud, and apply for operating licenses.

Kenya: Patrick Njoroge, Governor of the Central Bank of Kenya, said that Kenya plans to enter the Bitcoin field, which is to convert Kenya's base currency (fiat currency) into Bitcoin, because Bitcoin can solve the problem of Kenyan currency devaluation. It is reported that Kenya’s national currency has been on a downward trend in the past few decades. Since 2010, the exchange rate against the US dollar has fallen by nearly 50%. Njoroge believes that Bitcoin will protect Kenya from foreign exchange losses and will even reduce the country’s national debt as its price rises.

3. Industry chain related dynamics: BTC mining revenue increased by 25.1% month-on-month

Last week, there were 2.31 million new transactions in BTC, a decrease of 1.5% from the previous month; 8.97 million new transactions of ETH, a decrease of 0.6% from the previous week.

Last week, the average daily income of BTC miners was US$49.35 million, an increase of 25.1% from the previous month; the average daily income of ETH miners was US$2019.65 million, an increase of 13.6% from the previous month.

Last week, the average daily computing power of BTC reached 157.1EH/s, an increase of 0.4% from the previous month; the average daily computing power of the entire ETH network reached 384.3TH/s, an increase of 5.6% from the previous month.

Last week, the difficulty of BTC mining on the entire network was 21.43T, an increase of 2.5% from the previous month; the next difficulty adjustment day will be February 19, 2021, and the estimated difficulty value is 22.32 T (+4.14%); the average ETH mining on the entire network last week The difficulty is 4.88T, an increase of 5.9% from the previous month.

risk warning

Regulatory policy uncertainty. At present, the blockchain is in the early stage of development, and there are certain uncertainties in the supervision of blockchain technology, project financing and tokens in various countries around the world. Therefore, there is uncertainty in the development of industry company projects.

The development of blockchain infrastructure fell short of expectations. Blockchain is the core technology to solve supply chain finance and digital identity. At present, the blockchain infrastructure cannot support high-performance network deployment. The degree of decentralization and security will restrict high performance. Blockchain infrastructure exists. The risk of development not meeting expectations.