Suddenly! Bitcoin once "dived" to more than $2,000! The whole network evaporated 6.7 billion yuan in 24 hours, and more than 290,000 people liquidated their positions! What is the situation?
Edited by: Du Yu
In the early morning of April 13, the virtual currency market was "bleeding like a river" again. Among them, the price of bitcoin once plunged by more than $2,000, falling from $67,100 to below $65,000. As of press time, Bitcoin was trading at $66,974.6, down 5.65%. Dogecoin fell more than 12%.
According to CoinGlass data, within 24 hours, a total of 296,300 people liquidated positions in the virtual currency market, with a total liquidation of 920 million US dollars (about 6.7 billion yuan).
Bitcoin has staged many "big ups and downs" recently. On March 14, Beijing time, the price of Bitcoin soared above $73,000, refreshing a record high for four consecutive days. However, on March 15, the price of bitcoin fell below $66,000 to a one-week low.
From 10:35 a.m. Beijing time on April 2, Bitcoin suffered a large-scale sell-off, and the price fell rapidly, falling below the two integer thresholds of $67,000 and $66,000 within 10 minutes, a decline of more than 6%.
Some investors lamented on social media: "Money evaporates faster than water." ”
The upcoming blockbuster event in the virtual currency market this month - the Bitcoin "halving" has attracted the attention of investors, because it will be directly related to the supply and demand of Bitcoin.
A Bitcoin "halving" event is the halving of the reward for producing a new block, which occurs approximately every four years. The exact timing depends on the speed of block generation on the Bitcoin network, which will reduce the supply of Bitcoin. The halving of the block reward means that it takes longer for all bitcoins to enter circulation.
For the upcoming "halving", Kevin, founder of Web3 CD and CEO of Full Speed Innovation Capital, pointed out in an interview with the reporter of "Daily Economic News" that "the difference between this round of Bitcoin and the previous one is that the previous cryptocurrency bull market was after the 'halving', but this time it was before the halving, so this round of the market may go out in a different way than the previous ones." However, at least for now, the cryptocurrency market as a whole is in a rather disorderly state, and no one can better predict what will happen next. ”
Image source: Visual China-VCG31N2061710618
The cryptocurrency market is magical, from the sky to the floor, it is a matter of moments. But over the years, there are still many investors chasing Bitcoin, and there are many reasons behind it.
According to Shangguan News, "First, Bitcoin presents high return potential, and over the past few years, the price of Bitcoin has outperformed traditional assets. Second, Bitcoin has a low correlation with traditional financial markets, and incorporating it into a portfolio can diversify risk. In addition, some investors believe that it has anti-inflation properties and can be used as a store of value. Angel investor Guo Tao analyzed to reporters.
However, there are still many risks associated with investing in Bitcoin. Wang Peng, a researcher at the Beijing Academy of Social Sciences, told reporters that the price of bitcoin can fluctuate significantly in a short period of time, causing investors to suffer huge losses, and although Bitcoin's technology is considered safe, there is still a potential risk of being attacked and stolen by cyber.
In addition, the current regulatory policies for Bitcoin vary from country to country, and the legal framework is still evolving, which affects its legitimacy and market acceptance. The price of Bitcoin is subject to large players, and the market is at risk of being manipulated.
According to a report by Beijing Business Daily, does Bitcoin have further upside? How will it go in the future? Yu Jianing, co-chairman of the Blockchain Special Committee of the China Communications Industry Association, pointed out that digital assets led by Bitcoin can be regarded as a "future asset" whose value can effectively pass through the economic cycle. Digital assets can be understood as a mirror of the development of the digital economy, just as the stock market reflects the relationship between the real industry, and the revaluation of digital assets reflects the development and prosperity of the digital economy. However, as a highly volatile asset, the price of Bitcoin may experience wild fluctuations in the short term, which largely depends on factors such as market sentiment, macroeconomic environment, and regulatory policies.
Yu Jianing also reminded that the fluctuation of Bitcoin price is part of its essential attributes, and any investment decision should be based on sufficient market research and personal risk tolerance. Understanding the position of Bitcoin in digital assets and the underlying logic of the relationship between digital assets and the digital economy is of great significance for investment decision-making and market analysis.
The daily economic news integrates Beijing Business Daily, Shangguan News, Daily Economic News, and market public information