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Recently, Bitcoin's "roller coaster" market has attracted attention. After hitting an all-time high of $74,000 on March 13, the price of bitcoin has shown a "wave curve" growth trend, and since April, the price of bitcoin has plummeted, falling below $65,000 on April 2, and now it has fallen below the $60,000 mark. On April 14, Beijing time, the price of Bitcoin suffered a large-scale sell-off, and the price fell rapidly, once falling below the integer mark of $60,000 / piece, and the lowest fell to $59,968 / piece, and then briefly stopped falling and rebounded. As of press time, the price of bitcoin continued to fluctuate, tentatively trading at $62,649 per coin, down more than 9% in 24 hours.
During the collapse of the price of bitcoin, the liquidation text messages in the mobile phones of investors in the currency circle continued, and the price of bitcoin plummeted by 5,000 US dollars (about 36,187 yuan) in 15 minutes, resulting in a large number of investors who were bullish on contracts to liquidate their positions intraday. According to Coinglass data, in the past 24 hours, a total of 258,000 people in the virtual currency market have liquidated, with a total amount of 966 million US dollars (about 6.99 billion yuan), of which 787 million US dollars have been liquidated by long orders and 179 million US dollars have been liquidated by short orders.
One liquidator said: "Bitcoin has been switching repeatedly in the skyrocketing and plummeting recently. Excessively high prices make Bitcoin dangerous, and reversals in market sentiment often occur in an instant, where money evaporates faster than water. ”
Industry insiders said that bitcoin was sluggish this week, mainly due to increased geopolitical uncertainty and the market's risk aversion spread to virtual currency assets. In addition, industry insiders said that investors' high expectations and speculation about the Bitcoin "halving" event may push the price higher before the "halving", and once these expectations are not met, a large number of investors may be inclined to take profits, causing the price to plummet.
Looking back at the development of the cryptocurrency industry from the "Bitcoin crash":
- The number of cryptocurrencies in the world
At present, there are various cryptocurrencies and electronic currencies around the world, and a large number of cryptocurrencies are created by non-financial institutions, which are issued and traded on the blockchain with independent transaction prices. According to Finbold data, in 2020, the number of cryptocurrencies in the world was only 8,000+, and by 2021, it will directly exceed 16,000, a year-on-year increase of 98.98%.
- The principle of Bitcoin generation
Bitcoin is a digital currency with a constant total amount of 21 million, which has the same characteristics as the Internet, such as decentralization, globalization, and anonymity. Bitcoin runs on two core concepts: nodes and a decentralized ledger. Each computer with a Bitcoin client is called a node, and each node is equal, and there is no central node. The network of countless such computers connected to each other is a kind of decentralized ledger.
- Bitcoin is far ahead in terms of market capitalization
From the perspective of the global private digital currency market capitalization ranking, as of January 19, 2022, the market capitalization of Bitcoin (Bitcoin) is $783.33 billion, ranking first; followed by Ethereum (Ethereum) with a market capitalization of $365.47 billion; THE THIRD IS LATOKEN, WITH A MARKET CAPITALIZATION OF $247.18 BILLION.
Cryptocurrency trader and independent analyst Rekt Capital said that the price of bitcoin will continue to recover before the "halving" event. During the 2016 and 2020 halving cycles, Bitcoin fell by 38% and 20%, respectively.
A report by JPMorgan Chase & Co. states that the Bitcoin "halving" event could have a serious negative impact on the profitability of Bitcoin miners. The report warns that the price of bitcoin could plummet to $42,000 per coin, which is more than 36% from the current price.
Note: This article is for content purposes only and does not constitute any investment advice.
Prospective Economist APP Information Group
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