Let me correct you first: What I wanted to express in yesterday’s article is that the four-year cycle of the crypto ecosystem (not Bitcoin) may be broken due to the influx of entrepreneurs and the explosion of the ecosystem. The current situation of Bitcoin’s four-year cycle shows no signs of being broken.
The most eye-catching news in the encryption ecosystem in the past two days is that Yunfeng Financial, which is closely related to Jack Ma, purchased Ethereum as the company's strategic reserve.
According to online information, Jack Ma personally holds Yunfeng Financial11%. In addition, Jack Ma holds Yunfeng Financial47.25%shares.
Judging from relevant data, Jack Ma has a considerable say in Yunfeng Finance. Therefore, many articles on the Internet interpreted this action as Jack Ma’s strategic deployment of Ethereum.
When I first saw this information, what I immediately thought of was: Since it is a strategic reserve, why didn't I buy some Bitcoins? Then, I remembered that Jack Ma expressed this view in a public speech (to the effect): Bitcoin has little value, but blockchain technology is valuable.
In the public announcement of Yunfeng Financial, there is this passage:
"Incorporating ETH into the company's strategic reserve assets is in line with the Group's Web3and other cutting-edge fields, and canfor real-world assets (RWA) Tokenization activities provide critical infrastructure support. "
"To achieve a comprehensive and organic integration of finance and technology for customers,Effectively strengthen customers’ service experience and financial sovereignty． text="">Combining Jack Ma's previous views and Yunfeng's announcement, we can understand why the company bought Ethereum instead of Bitcoin, and the reasons become clearer:
The company considers more from the layout of technical facilities rather than from the aspect of financial investment.
forRWA means that it is best to operate Ethereum nodes yourself and strive for block packaging; "enhancing customer service experience and financial sovereignty" means that you need to operate Ethereum nodes yourself and strive for block packaging.
In addition to Yunfeng Finance, in Jack Ma's business landscape, Ant has been more active in the encryption ecosystem in recent years. Ant announced with great fanfare some time ago that the company is developing a second-layer extension based on Ethereum and is preparing to lay out the RWA ecosystem.
Now Yunfeng Financial’s actions echo those of Ant.
I think ofTom Lee once said that he believed banks would buy a large amount of Ethereum in the future because banks need to operate their own Ethereum nodes in order to carry out their business.
Yunfeng Financial's current behavior is verifiedTom LeePredictions of the past.
From a liquidity perspective, Yunfeng bought Ethereum from the perspective of infrastructure construction. Such an operation is unlikely to be easily sold due to price fluctuations, so such a purchase will firmly lock in the liquidity of Ethereum.
According to Yunfeng Financial (HK 0376）2024Financial data at the end of the year, the total investment held by it is approximately789billion Hong Kong dollars. The total amount of Ethereum purchased this time is approximately 3.4billion Hong Kong dollars (4400Ten thousand US dollars), which is really a very small number in its entire investment territory, accounting for even 0.5%Not even.
So this investment is very eye-catching to the public, but it is basically just a slight test of the water for the company.
What is more interesting is the price at which it buys Ethereum.
According to the information, the company invested a total of 4400Ten thousand dollars bought1Ten thousand Ethereum, then the average price is4400about US dollars.
Thinking of other companies that have entered the market to buy Ethereum in large numbers in this round, they (such as HarpLink text="">etc.) The initial purchase price is approximately~ 4000 US dollars , and continued purchases were made subsequently.
So overall, the price range for companies entering the market to buy Ethereum in this round is probably 3500USD ~ 4400between US dollars.
This price range will form a psychological hint for subsequent buyers in the future.
Bitcoin’s pricing power has completely shifted from retail investors to institutions, and now this trend is repeating itself with Ethereum.
In the future, when more and more institutions and funds enter the market to buy Ethereum, I believe3500USD ~ 4400The psychologically suggestive price of the U.S. dollar will become their reference price.
Now the market is bullish. When this bull market ends and the next bull market starts again, I estimate that the price of Ethereum will fall to 3500It’s probably very difficult to get one below US dollars.
Joy