Xinhua News Agency, Beijing, November 26 (Global hotspot) Bitcoin continued to fall, the cryptocurrency "bubble" bottomed out?
Xinhua News Agency reporter
As the world's most well-known and most controversial cryptocurrency, Bitcoin finally climbed to the $4,000 mark on the 26th after experiencing the worst week of this year's market plunging, but compared with the high of 20,000 US dollars at the end of last year, it can be said that "Cold and hot two heavens."
Since mid-November, Bitcoin has repeatedly refreshed its lowest level since September 2017, driving the collective decline of cryptocurrency.
Analysts believe that the plunge in the bitcoin market may hit speculative individuals, but it has little impact on the financial market. With the serious bubble clearing, the maturity of supporting technologies and the improvement of laws and regulations, it is conducive to the blockchain technology from speculation. The "kidnapping" has been truly beneficial to development.
[News facts]
As of 3 pm on November 26, Bitcoin regained its decline and returned to above $4,000, reaching $4,150.
Since the end of last year and the first half of this year, the bitcoin market has stabilized at $6,500 for several consecutive months.
However, since November, the bitcoin market can be described as “falling down”, especially since the mid-term, it has fallen for more than ten trading days. Data from several digital currency exchanges showed that bitcoin prices fell more than 25% last week, making it the worst week for Bitcoin market performance this year. On the 25th, Bitcoin once fell below $3,500, the lowest since August 2017.
Driven by the decline in Bitcoin, cryptocurrency fell collectively. The cryptocurrency of Ripple (XRP) and Ethereum (ETH) fell more than 25% last week. According to statistics, the overall market value of global cryptocurrency is currently about 154 billion US dollars, which has shrunk by about 80% compared with more than 800 billion US dollars in January this year.
As one of the few countries in the world that allows Bitcoin to be used for some goods and services, the United States has recently made a continuous move to strengthen regulation of cryptocurrency transactions. According to US media reports, the US Securities and Exchange Commission punished two cryptocurrency companies on November 16. The US Department of Justice is also investigating whether bitcoin has manipulated prices during the surge in the past year.
【In-depth analysis】
The "summer summer" that has risen in a thousand miles seems to be still yesterday. Why did Bitcoin encounter "severe winter" so soon?
Analysts pointed out that the current round of bitcoin market plunging was caused by multiple factors. First of all, there is a serious bubble in the bitcoin market. It is a consensus among all walks of life. The market behavior of Bitcoin itself is speculation, not investment. Speculators “buy up and sell down”, especially the large holder’s selling behavior is more likely to encourage Panic selling, which triggered a sharp shock in the market. Second, at a time when global risk assets are “ebbing”, the prices of stocks and other investment assets are also significantly adjusted back, let alone speculative assets such as cryptocurrencies.
Analysts also said that mainstream investors are rarely involved in this market because of concerns about the lack of regulation in the Bitcoin market and weak market infrastructure. In addition, the role of Bitcoin as a payable currency has shrunk further globally, and Bitcoin has plummeted. Although it may hit the investment individual, it has little impact on the global financial market.
[Instant comment]
After the 2008 international financial crisis, Bitcoin can be described as “coming on the ground” and wearing a glazed coat such as decentralized. The "blockchain" technology is the underlying technology and supporting technology of Bitcoin dependence, and is highly expected by the outside world.
However, the two cannot be simply confused. Bitcoin, which has been plunging and plunging, can't turn a blind eye and let it go; it can't kill a "blockchain" technology with huge application potential.
All speculators should understand that when there is a daily wage, there will be a bubble out of the clear day. The development of science and technology is to promote human progress and should not be kidnapped by "speculation." With the maturity of supporting technologies and the improvement of laws and regulations, it is hoped that the big waves will wash away speculation and manipulation, leaving behind ideas and technologies that are truly beneficial to the future.
[Background link]
Bitcoin is encrypted data based on blockchain technology. In 2008, some people put forward the concept of Bitcoin on the Internet under the name of “Zhongben Cong”. The first batch of bitcoin was introduced in 2009 and is gradually being sought after by the market. On May 22, 2010, someone successfully purchased two pizzas for the first time with 10,000 bitcoins, at a price equivalent to $41.
2017 is a "bitcoin year", and bitcoin prices have soared from less than $1,000 to nearly $20,000 at the end of the year.
Globally, Bitcoin is allowed to be used for some goods and services only in markets such as the US and Japan, but it is also subject to risk warning or regulation.
According to the relevant regulations of the People's Bank of China, Bitcoin is not issued by the monetary authorities. It does not have monetary attributes such as legal and mandatory. It is only a specific virtual commodity. It does not have the legal status equivalent to currency. It cannot and should not be used as currency. Used in circulation on the market. (Participating in reporters: Yang Dingdu, Jin Wei, Liu Si; Editor: Sun Hao)
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