Why did Bitcoin plummet (why did Bitcoin plummet so much)

Why did Bitcoin plummet? Why did Bitcoin plummet? Why did Bitcoin skyrocket In recent days’ market trends, many friends in the currency circle have been asking: Why is this situation happening? There are two reasons:

The first is that there are no hot spots in the market. From historical data, during the bull markets of 2017 and 2018, Bitcoin experienced cycles of ups and downs, but this time there was another significant correction. At that time, the price was around 27000 US dollars, but now it has dropped to around 18800 US dollars The second issue is the lack of market popularity (since June 2017), with Bitcoin prices hovering above $10000. However, since the second half of this year, BTC has been slowly rebounding, currently fluctuating around $20000 So if it weren’t for the institutional buying that led to a further drop in prices, then this situation would probably have happened in the future. But this issue is actually an important topic of concern for everyone – because many people are very concerned about digital currencies Therefore, when Bitcoin skyrocketed, many friends also thought it was too expensive. They believe that its peak appeared at the end of 2017, followed by a strong upward trend and a rapid collapse

These investors also stated that they have little investment experience and have not made enough investments to purchase Bitcoin, which has caused many people to doubt: “I personally am not optimistic about digital currencies.”

Of course, some analysts pointed out that one of the reasons why Bitcoin can take this path is simple, that it is used as a value storage tool, not a payment tool, and even more like a speculative trading method.

. Is this a very obvious problem? “

In fact, most people do not know what Bitcoin is, but some highly influential white players or” old leeks “often see it as a safe haven category for encrypted assets, “It must be reasonable for you to think that Bitcoin can become the next big thing. After all, most people now use cash to operate in the exchange, and still need to pay to buy Bitcoin.” For example, someone mentioned that in December last year, someone bought 100000 Ethereum (the total price was about 8000 yuan). However, later on, as Bitcoin continued to appreciate, it also continued to climb, breaking through the $14000 mark and reaching a maximum of $15000 mark. However, it was quickly suppressed above $13000 and continued to rise until early 2019

Another netizen told Decrypt that he found a huge foam in the process of forming. He said that the foam was caused by a group of people through mining, coin speculation and other ways, including the hacker organizers who used the loophole to dig out a large number of tokens to attract funds into this field

Why Bitcoin has fallen so much

Editor’s note: This article is from Babbitt Information (ID: bitcoin8btc), authored by Wang Jiajian, and published under authorization by Planet Daily Bitcoin has dropped nearly 80% from its high point on March 12th, and its current price is hovering around $54000. Although it is currently a bear market, there are also some reasons why Bitcoin prices are so high The US President’s Financial Markets Working Group stated that Bitcoin has “no intrinsic value” and warned investors to be aware of potential price manipulation. It is reported that the institution is studying how to use Cryptocurrency to hedge the impact of risk and volatility. If these concerns are seen as short-term bearish or long-term trend signals, it is not ruled out that Bitcoin may soon experience further decline Federal Reserve Chairman Jerome Powell stated that the main goal of the central bank’s issuance of digital currency remains a payment system. We believe that this technology has enormous growth potential. In addition, Powell pointed out that despite this, due to the lack of a clear regulatory framework and government supported economic stimulus measures, he still hopes to maintain the flow of his reserve assets

It was previously reported that with the outbreak of COVID-19, the global economy was in turmoil. However, since late February, global economic growth has slowed down. With the COVID-19 pandemic, countries around the world began to shift towards cash, leading to an increase in inflation rates. According to CoinGecko’s data, the average GDP for the entire year of 2017 was approximately $25 trillion. The peak in 2017 exceeded 20 trillion yuan, and the lowest level in 2019 was close to 70 trillion yuan. At the end of the first quarter of 2020, this proportion only decreased to around 10%. In the first half of 2018, the unemployment rate in the United States was as high as 7%. In contrast, China’s unemployment rate has reached 9% It is worth mentioning that last June’s CPI data was similar to previous times, when only 4% of respondents were optimistic: “If our GDP can maintain the current situation and continue to rise in the next five years, we will see higher interest rates and lower investment returns. Since early January of this year, people seem to have realized that inflation may make many people feel uneasy as they cannot obtain enough funds to purchase gold and other precious metals. However, in recent months, this situation has changed, especially for the younger generation.