Institutional demand is too strong! Bitcoin breaks through $54,000 and returns to $1 trillion in market value!

Source: Wall Street Journal, Author: Xu Chao

The market's optimism about Bitcoin has been rekindled. On Tuesday, the price of Bitcoin exceeded $54,000, hitting a two-week high, and its market value returned to $1 trillion.

Bitcoin rose more than 7.5% on Tuesday, with the price of a single bitcoin exceeding $54,000. Ethereum, another digital currency, also rose sharply on Tuesday, with a daily increase of more than 13%.

Edward Moya, senior market analyst at Oanda, said that institutions are still very interested in digital currencies, and as more large bets continue to flow into the digital currency market, the bullish sentiment on Bitcoin and Ethereum has returned.

To skeptics, the cryptocurrency rally represents a prime example of large-scale policy-driven speculative bubbles that could quickly burst once financial market conditions tighten.

However, Goldman Sachs previously analyzed that, unlike the digital currency bubble in 2017, in this round of rally, institutional investors have a huge demand for digital currencies, which may provide support for Bitcoin's rally.

Goldman Sachs' view is also confirmed by numbers. NYDIG, an institutional company that provides Bitcoin custody services to institutions, previously stated that life, annuity and property/casualty insurance companies have more than $1 billion in direct and indirect Bitcoin exposure on its platform.

Some Wall Street analysts are also very optimistic about the future prospects of digital currency.

Evercore ISI strategist Rich Ross said that Bitcoin is currently in a very strong position and its price is expected to exceed $75,000 in the future.