The "currency circle" once again ushered in its darkest moment. Recently, Bitcoin has experienced a "free fall" decline, falling for more than 10 consecutive days, once falling below 20,000 US dollars, and falling more than 70% from its historical high of 69,000 US dollars, hitti

"currency circle" once again ushered in its darkest moment. Recently, Bitcoin has experienced a "free fall" decline, falling for more than 10 consecutive days, once falling below $20,000, falling more than 70% from its historical high of $69,000, hitting a new low in the past 18 months, virtual currency The total market capitalization fell below $1 trillion.

's plummeting and skyrocketing performance is a consistent performance of Bitcoin. This is caused by the fact that Bitcoin does not have legal currency status, has no actual value support, and related transactions are purely speculative.

Judging from the direct trigger, this round of Bitcoin's plunge is related to the Federal Reserve's interest rate hike . As the U.S. inflation data in May exceeded market expectations, the Federal Reserve recently announced a one-time interest rate hike 75 basis points. The market's expectations for the Fed's interest rate hike continue to rise, global liquidity is tightening, and funds flow to safe-haven assets, U.S. stocks and crude oil The prices of other risky assets have fallen significantly, and virtual currencies with higher risk appetite have been the first to bear the brunt.

Major negative news on multiple virtual currency platforms further exacerbated the decline of Bitcoin. Recently, Celsius Network, a well-known digital asset trading platform, suddenly announced that it would suspend the withdrawal, swap and transfer of all virtual currencies in platform accounts; another virtual currency trading platform, Bitcoin Base, announced that it would lay off about 1,100 employees. staff. Investors are worried that the "cold winter" in the virtual currency market is approaching, and assets such as Bitcoin may face solvency risks and market capital outflows will accelerate.

In addition, lack of supervision is an important external factor in the skyrocketing rise and fall of Bitcoin. Due to the large differences in central government strength, financial market development, and investor risk preferences around the world, countries have different regulatory attitudes towards Bitcoin. Although our country has long banned virtual currency speculation and trading, some Western countries represented by the United States have not implemented adequate supervision, which has objectively contributed to the lack of price limits, ultra-high leverage ratio , and is full of traders and various pseudo-technical concepts. The formation of a "currency circle" has brought great risks to global financial security and financial stability.

With frequent plummets, the risks of Bitcoin investment have been fully exposed. Compared with the high of $69,000, the decline seems to have been deep, but we still need to be wary of the risk of zeroing out. Bitcoin is just a string of digital codes, and the income mainly comes from the price difference of buying low and selling high. In the future, once investor confidence collapses and no longer "takes over", or when sovereign countries such as the United States declare Bitcoin illegal, Bitcoin will return to its original status. Worthless original value. Investors should not rush into the market with the idea of ​​buying the bottom of and to avoid being "cut off leeks".

Author: Li Hualin

Producer: Qiao Shenying

Reviewer: Zhang Qian

Editor: Zhang Shuo