Why did Bitcoin crash (why did Bitcoin suddenly crash)

Why did Bitcoin crash? Why did Bitcoin crash Firstly, there was a significant downward trend in the previous period of the market, especially on February 18th of this year. And just this morning, BTC plummeted from above $60000 to a minimum of around $52000; Subsequently, it began to decline and plummeted to hover around $31000

The sharp drop was caused by the recent continuous decline of the US stock market and the continuous diving of the US stock index, and the Cryptocurrency market as a whole was in shock. But at the same time, a recent report issued by BlackRock, a global venture capital firm, pointed out that as the Federal Reserve and financial institutions continue to tighten policies to deal with the impact of the COVID-19 epidemic, traditional assets are under pressure In addition, according to researchers, the current economic situation in the United States is still deteriorating, and factors such as insufficient liquidity in the US stock market make investors easily affected. Therefore, many retail investors will choose to shift most of their funds to other currencies for hedging, or directly sell their holdings of digital currencies to obtain returns or cash out for shipment Secondly, some speculators prefer the profit opportunities brought by the rise in Bitcoin prices, which mainly include the following aspects: firstly, a large number of investors obtain stable profits by purchasing futures contracts and over-the-counter trading; secondly, more and more people are placing their money in the exchange for trading; thirdly, Bitcoin prices have skyrocketed to over $48000; Fourthly, some investors sell their positions for short-term speculation purposes

Why did Bitcoin suddenly crash

Why did Bitcoin suddenly crash today? On Monday, November 30, 2018, which had just ended, the US stock market experienced another major fluctuation. Bitcoin fell from $60000 to a minimum of around $7000, and its price continued to rise to around $80000. At 4:30 am yesterday, the total market value of the global digital currency market reached $31.6 trillion, nearly 30% below its historical high. The surge in the entire cryptocurrency market also surprised investors, and some media even claimed that this was due to the shortage of safe haven assets such as gold during the epidemic, which led to a sharp drop in Bitcoin. However, this is only a temporary phenomenon and does not affect the overall market trend and changes in funding We do not know the reason for the sudden decline of Bitcoin this time, but some believe that one of the reasons for the collapse is that these retail investors do not have enough motivation to buy and hold Bitcoin for a long time, and it is becoming increasingly difficult to track the price trends of Bitcoin. Therefore, this situation will cause great damage to the subsequent market. If such an event really occurs, it indicates that most people in the current market are still waiting for Bitcoin to return to the critical position of $20000 So, how many people in the market are still looking forward to Bitcoin breaking the 2 trillion mark next? In fact, a similar situation had already occurred as early as January of this year, which means that the price of Bitcoin at that time had not yet reached $20000. Therefore, the sharp decline of Bitcoin this time was driven by institutional investor shipments and other currencies following the previous rise of Bitcoin. However, Bitcoin prices are still relatively low and have not received attention and recognition from the mainstream financial circle, let alone the recent sharp decline of Bitcoin, The factors behind it are also one of the focuses that many industry experts are paying attention to: firstly, whether Bitcoin can effectively stand the integer level of $19000; Secondly, as the Federal Reserve tightens its policies and Bitcoin continues to become a means of storing value, a large number of speculators in the market have begun to enter the Bitcoin field. In addition, some large investment companies price Bitcoin by increasing their holdings, increasing their selling pressure and reducing their confidence in the future market, further pushing up the price of BTC.