Zhixin Securities learned from the Intelligent Finance APP that on July 29, cryptocurrencies rose across the board. Bitcoin once again reached $70,000 after nearly two months, one step away from its historical high. In terms of news, US Republican presidential candidate Trump's positive attitude towards Bitcoin and his promise to implement more friendly regulatory policies for the cryptocurrency industry have had a positive impact on the market.

Trump declared that if he returns to the White House, he will make the United States the world's "cryptocurrency capital" and "Bitcoin superpower." He promised that under his leadership, Bitcoin will be mined and promoted to consolidate America's leading position in the global cryptocurrency field.

In his speech, Trump stated that he would establish a Bitcoin and cryptocurrency advisory committee responsible for design, regulation and guidance. He also promised to order the Treasury Department and other federal agencies to stop developing central bank digital currencies. Trump also promised to ensure that the federal government never sells its Bitcoin holdings and will treat them as "strategic reserve assets."

Trump predicted that Bitcoin's market cap will surpass that of gold and encouraged people not to sell their Bitcoin. He believed that since its inception, Bitcoin's market cap has consistently risen and has become the ninth largest asset in the world by market cap and will soon surpass silver and eventually surpass gold.

Since Trump revealed his support for Bitcoin, support for him has soon followed. According to US media reports, three large cryptocurrency companies have invested over $150 million to support candidates who advocate for cryptocurrencies in the congressional elections. The twin brothers Cameron and Tyler Winklevoss, who became billionaires through Bitcoin investments, promised to donate $1 million worth of Bitcoin to Trump's campaign. Dogecoin supporter and Tesla CEO Elon Musk has also joined Trump's circle of cryptocurrency advisors.

In recent years, the influence of virtual assets has continued to expand, becoming one of the indispensable asset categories. Data shows that Bitcoin is the most volatile asset category among major global assets in the past decade, with a volatility of 38.3% in 2023, surpassing crude oil and the Nasdaq 100 index.

Bitcoin is also attracting more and more global investors. On April 30, Bitcoin and Ethereum spot ETFs under Huaxia (Hong Kong), Boshi International, and Jiashi International officially listed on HKEx. Analysts believe that the issuance of Bitcoin and Ethereum spot ETFs in Hong Kong has serious systemic implications and will profoundly change the ecological pattern of the global virtual asset market from multiple levels.

In terms of supply, the computer code supporting Bitcoin stipulates a hard upper limit of 21 million Bitcoins, of which more than 90% of the supply has already been mined. In order to expand supply, digital computing machines run algorithms to "mine" new coins. However, only about 900 new Bitcoins can be mined per day, and this speed further declines after the periodic event of "halving."

Zhixin Securities believes that the core factors affecting Bitcoin mainly focus on changes in global liquidity, risk preferences, supply and demand, and technological advances, showing the properties of risk assets. It pointed out that Bitcoin may perform better than gold and the US dollar in the medium to long-term asset price trend rankings under conditions of tight supply and the geopolitical trend of anti-globalization, with the order being Bitcoin > Gold > US dollar.

Related concept stocks:

Meitu Inc (01357): The company bought Bitcoin and Ethereum in the past few years. As of June 2023, the company holds 940.497 Bitcoins and 0.031 million Ethereum, and the total holding cost accounts for about 10% of its total assets. According to the cost disclosed in its half-year report, holding Bitcoin earned RMB 0.161 billion, and holding Ethereum earned RMB 0.288 billion, with a total profit of RMB 0.45 billion.

Sinohope Tech Holdings (01611), formerly known as Huobi Technology, is now one of the largest cryptocurrency platforms globally. Sinohope Tech Holdings mainly provides virtual asset trading and technical solution services, including providing customers with virtual asset lending asset management and offering an OTC trading platform, acting as an exchange function.

Okg Tech (01499): According to the semi-annual report for the 2024 fiscal year, the company has a "heavy" position in digital currencies, with digital assets as high as 0.8 billion Hong Kong dollars, accounting for 75% of total assets. According to the disclosure, the company holds 1725 bitcoins and 6571 ethereums, which together account for 43% of total assets, and holds stable coins for another 21.7% of assets.

OSL Group (00863): The company participated in UBS Group's pilot issuance of investment-grade subscription certificate tokens in Hong Kong, covering the entire product issuance cycle. The project uses the Ethereum public chain by UBS Group to issue subscription certificate tokens linked to OSL digital asset securities and stocks.