Reasons for the sharp fall of BTC on January 11

1. To be honest, I may come into contact with bitcoin later than many of my peers, but I'm one of the quickest people to make a decision to join the instry. I learned from the news that Jet Li's one foundation was grateful to the enthusiasts who donated bitcoin. After less than ten minutes of thinking, I immediately decided to put down 90% of the projects I had completed and devote myself to this instry with incomparable prospects. I am a technology controller. Although I am not well-known in the Internet instry, I have operated no less than 10 it projects, and have cooperated with or established 7 companies. Among them, there are also successes and failures. The only instry that has not been involved is group buying, because I thought from the beginning that group buying deviated from its original appearance and would not be a very promising instry. But after learning about bitcoin, I feel that I have found a window, a window to the palace of ideals, a way to change the world. Today, I still insist on my choice, but the real use value of bitcoin in China is rarely reflected except for its speculative property. After multi-party analysis, I think the short-term downward trend is irreversible. Let's list the following factors that cause the price of bitcoin to fall:
first, the excessively free market - the copper price killer
bitcoin is born for freedom and lives for freedom, which has created a group of bitcoin fans who are crazy about pursuing freedom. The decentralization of the bitcoin exchange has been rampant for a time. The current situation of no supervision of the bitcoin exchange is obvious to all, and it can not be solved by itself, such as the forever anonymous dark village, the disorderly competition of mining machinery, etc. these important factors that are often ignored by people are also important drivers of the price drop
just think of the capitalist social system in the early days. People had great expectations and perseverance. They could sacrifice their lives for freedom and cut the rope on puppets at all costs. During the transition from feudal socialism to capitalism, people were like holding on to the water for several generations, suddenly came out to breathe fresh air, and no one was allowed to press themselves into the water again, The result is a social system of excessive freedom. The result of excessive freedom is that once someone obtains certain resources and social advantages, he can quickly devour everything around him like a black hole, forming a monopoly and giving birth to an oligarchy. They don't care about other people's lives, just like gladiators. If you lose, you have to bear all the consequences; If I win, I can enjoy some honor. But after all, oligarchs are a minority. Society is made up of thousands of ordinary people, so the system made up of people must be unstable and unreasonable. Therefore, modern capitalist society has learned to compromise. After learning from many advantages of capitalist society at that time, it is found that there are anti-monopoly laws, various anti-commercial bribery and other daily laws for proper supervision, In order to effectively delay the outbreak cycle of the financial crisis
the reason why so many words are used to describe capitalist society is that bitcoin has too many similarities with it. A brand new financial system does not depend on specific institutions or indivials, but also depends on all participants. With it, we can eliminate all external influences and keep our wallets. It's a great idea, but what about the reality? Holding a large amount of bitcoin, amzhuang can control the price of bitcoin. In the capital market, 1 billion yuan is only a very small amount. For the bitcoin market, it is enough to control the price rise and fall of any exchange, back and forth volatility, commonly known as "fleece". Easier said than done, as like as two peas in the market, you will be able to control the bitcoin in your hands. But you have to be in the market. For these makers, they can benefit from the ups and downs, because in the trend of the rising market, they will increase ring each shock period, and fall more every time the market falls. At the top of the pyramid, there are always only a few people
after more than a year of communication with players in the instry, we found that those who are still left behind are either deeply covered or persistent believers. Even if they are covered, only a few of them are entities. Most of the left behind are pure it houses, and they blush when they meet. Most of them have no financial experience, even few of them have speculated in stocks, so they are in shock, It's certain that Xiaosan will be injured< Another important factor is that, like stocks, the amount of cash in circulation is far less than the total value. Although several exchanges have not announced the amount of bitcoin and the total amount of RMB assets, it can be concluded from the data of mtgox's bankruptcy that the amount of cash announced by mtgox is US $40 million, Bitcoin is worth US $450 million, reaching a staggering 1:11. According to my preliminary understanding, the general comparison of domestic trading platforms is between 1:3 and 1:6, which is slightly better than mtfox, but it is also enough to illustrate the problem. Once the bear market comes, the power of shorting is far greater than that of long
although the stock market did not rise sharply last year, many people did profit from the stock market and attracted many of the few users who swayed between the stock market and bitcoin. Many of the professional investment users and deep-seated users who benefited from bitcoin also left the bitcoin instry for various reasons. The big reason is that for bitcoin, They think that in addition to speculation, it is a game played by technical talents. Although this is a misunderstanding, let's think about it from another perspective. If you are an investor outside the IT instry and face the world's largest trading platform, you will go bankrupt if it goes bankrupt. If bitcoin is stolen, it will be stolen without supervision and responsibility. What would you think? Therefore, the reason for today's situation is that the number of bitcoin has not decreased, but the capital is decreasing. Although there are many foreign advantages ring this period, the domestic situation has been declining. This is an indisputable fact
with the decrease of funds, long has lost enough momentum. The reason why there is no sharp decline is that there are still a number of bitcoin loyalists. Some of them have been engaged in bitcoin for several consecutive years, and almost every year they have to experience a similar slump. Therefore, they still firmly believe that this year is just a repetition of the market rules of previous years, and the final price will rise; Of course, I personally believe that in the long run, the trend of bitcoin will go up, but is it half a year or three to five years? I'm really not sure, because the biggest constant in the world is change. As the saying goes, the flowers are similar year by year, but the people are different year by year. The past experience may not be applicable to the present< Third, domestic policy - gold price killer
I don't know if the Americans have understood that it was not Japan, the United States, Europe, but China that decided the price of bitcoin in 2013. Made in China used to be a headache for foreigners. Now, they also realize the power of China's speculation. China's real estate speculators are like locusts everywhere they go. At present, China's speculators are also rapidly overdrawn the growth value of bitcoin. China, which has 80% of the world's trading volume, explicitly forbids the value of bitcoin as a medium of exchange, so it has no real value in China except for speculation
I believe that the world's understanding of the power of Chinese speculators in bitcoin began with the documents of five ministries and commissions, because before that, almost no organization participated in the international bitcoin conference. After that, many foreign media swarmed in, professional and unprofessional media came. This time, although the documents on April 15 have not been confirmed, the financial times interviewed bitcoin in advance, which shows that they recognize the power of Chinese speculators
why is an Internet proct that started in foreign countries so influenced by China's policies? This is not its main application place, which just reflects that the price of bitcoin is seriously out of its actual value line, artificially pushed up and overdrawn its value. In my opinion, without CCTV's report and China's participation, it would have been good for bitcoin to have a price of more than 1000 last year. It was also e to excessive attention, which created the fastest five ministerial documents in history< 4. Crazy miner - the ultimate price killer
the computing power of bitcoin miner has increased from 1p at the end of last year to more than 30p now. In less than five months, the price of bitcoin miner has dropped from 6000 to 2700 today. In other words, the number of miner has increased dozens of times, from CPU to motherboard, power supply, power supply, etc The chassis and processing costs are all paid in RMB. Just imagine how much cash flow the mining machine has taken from the whole bitcoin ecological chain. Once the cash flows into the hands of TSMC, motherboard factory and others, it will never be kept back. This is also the result of disorderly competition, once profitable, the number will never end! It is said that Shenzhen proces 90% of the world's computing power of mining machines, and each time the chips are streamed, the chips are less than 3.5 million, more than 20.3 million, not to mention the whole machine. A mining machine manufacturer I know in Shenzhen club said that he sold 1000 USB mining machines a minute, which shows the madness
to sum up, all aspects have exerted pressure on cash flow, so the continuous decline of bitcoin in the short term is caused by many reasons. Even without the 4.15 document, I believe a continuous decline process will be formed. As for the bottom, it depends on the belief of those who still hold fast to it and when the crazy mining machine will not continue, And the actual application of bitcoin in foreign countries
those who played with stocks in 2008 may find that bitcoin shares a striking resemblance to the price trend of stocks. If bitcoin goes up from 2000 to 5300, any good news, even an additional issue, will make stocks soar all the time. After that, although the stock surged to the highest point, the downward trend was like "defeat like a mountain". Any bad news would cause a decline. Coupled with the excessive issuance of new shares and serious overdraft of market cash, the a share once fell back to about 1600 points. Although it rebounded to more than 3000 points, it would still jump to about 2000 points. After several years of shock, it did not improve
bitcoin plate is small and easy to rise and fall. However, if the retail investors are excessively injured, bitcoin's loyalty can only be powerless to let bitcoin rise. The false rise of the makers will face a lot of market capital pressure and can only follow the trend
at present, there are several companies in the whole instry that can support short selling, such as fire coin, China bitcoin and okcoin, which also aggravates the dection process
of course, I am still very optimistic about the long-term development of bitcoin, but I really can't see how to break the current deadlock. The purpose of this article is to provide some personal opinions for the majority of small businesses. Maybe you are more in-depth and complete than I think, but finance is nothing more than that

2.

The reasons for the sharp rise of bitcoin are very complex, mainly e to the continuous admission of institutional users through the compliance channel. In short, many bitcoin holders do not really understand bitcoin itself, but just regard it as an investment proct with huge profits, but ignore its risks

the concept of bitcoin was first proposed by Nakamoto on November 1, 2008, and was officially born on January 3, 2009. According to the idea of Nakamoto, the open source software is designed and released, and the P2P network on it is constructed. Bitcoin is a virtual encrypted digital currency in the form of P2P. Point to point transmission means a decentralized payment system

unlike all currencies, bitcoin does not rely on specific currency institutions. It is generated by a large number of calculations based on specific algorithms. Bitcoin economy uses the distributed database composed of many nodes in the whole P2P network to confirm and record all transactions, and uses the design of cryptography to ensure the security of all aspects of currency circulation

e to the decentralized programming of the bitcoin system, only 25 bitcoins can be obtained every 10 minutes, and by 2140, the maximum number of bitcoins in circulation will reach 21 million. In other words, bitcoin system is able to achieve self-sufficiency, resist inflation through coding, and prevent others from destroying these codes

3. Maybe everyone has a dream of "getting rich overnight", but no one has ever thought about "going bankrupt overnight"
in fact, this does not mean much to us. After all, we have never experienced "sudden wealth". How can we talk about "bankruptcy"
bitcoin can be regarded as an imperial presence in virtual currency, and the price of each one is amazing
after bitcoin plummeted some time ago, I saw a very interesting passage:
a friend in the coin circle was still talking about buying a house in the second ring of the imperial capital last year. When I met him today, he said to me: Hello, this is your take out
people who once relied on bitcoin and were worth billions of dollars have fallen to this point in just a few days. How can we not let people sigh
12% in a day, 42% in a month, 77% in a year, and 1.6 trillion in evaporation, no less than the magnitude 10 earthquake
bitcoin, which has doubled 25 million times in the past eight years, has now become a boundless hell struggling to survive
at the end of 2017, the high price of US $20000 was amazing,
10 bitcoins can buy a Mercedes Benz S500,
100 bitcoins can buy a three bedroom apartment in Shenzhen. It doesn't look like much, does it
but in 2009, one dollar could buy 1309 bitcoins. Do you think you missed dozens of billions
however, as we approach the end of the year, bitcoin has become a sad and helpless topic
at the beginning of bitcoin's decline, most people scrambled to get the bottom, but did not think that it was like jumping into an endless abyss, the bottom was broken again and again, and it was just between your thoughts that you lost everything
for the sadness of currency speculation, those who don't will regret it even more
in the past 11 years, I knew that someone had asked for 6800 financial procts on hand
but in the end, instead of buying bitcoin, she spent it traveling
if you buy it, it will be worth about 100 million at the end of 17! Even if it's 4000 dollars, there's 20 million
it turns out that most of the time, we just miss hundreds of millions of properties, but we don't know it
if we want to make money, the stock market and real estate market are all weak, where can we compare with the bitcoin market
of course, some people have studied that every sharp fall of bitcoin will predict the next sharp rise:
in November 2011, US $30 fell to US $2, a 93% drop
in December 2013, it dropped from $1166 to $170, a drop of 85%
since 2017, it has fallen below $4000, a 77% decline
it means that every fall will be followed by a more violent rise
however, many people will suffer from Stockholm syndrome after being locked up. The more they are locked up, the more convinced they are of the scarcity of bitcoin, and then they will surely usher in a ten thousand times soaring future
after all, most of the time, people who rely on bitcoin to make a fortune are not willing to believe that they will lose money
stock god Warren Buffett once warned us: bitcoin is a mirage, a way to transfer funds, and the quadratic power of rat poison. Cryptocurrency has no bottom. What you can do is to stay as far away as possible
we don't know whether bitcoin will continue to fall or soar overnight in the near future. All we can do is wait and see
admission? It depends on your own choice. After all, every financial management has its own risks
be cautious when entering the market. This sentence is not only applicable to the stock market, but also to the bitcoin circle
but as the saying goes: if you are brave enough, if you are hungry enough, you can decide for yourself! Mi Xiaoli, a new way of life.

4.

The Open Market Committee expects to raise interest rates three times next year, and the market expects to raise interest rates two times. On the other hand, bitcoin is better than the market www.toubi.com According to the data above, it rose from more than 5400 points in the early 15th to more than 5600 points today. The increase of interest rate by the Federal Reserve not only did not cause the decline of bitcoin, but also caused a small rise. What makes bitcoin rise under the influence of such a big policy?

Tags: bitcoin of the Federal Reserve

< H2 > 2. Why? From November last year to the beginning of this year, the virtual digital money market represented by bitcoin has taken China's policy as the wind vane. Looking at China's global price trend, I can tell you the story behind each candle chart along the way. The range of rise and fall is very large, but all investors can see clearly why it will rise and why it will fall, Bitcoin is a kind of network virtual currency, which is characterized by decentralization, anonymity, can only be used in the digital world, does not belong to any country or financial institution, and is not subject to geographical restrictions. It can be exchanged anywhere in the world. Its characteristics make us firmly believe that bitcoin will become a mainstream currency in the future. Just like diamonds, at the beginning, someone picked up some shiny things by the river or on the beach, which was caused by...

Tags: bitcoin price, bitcoin

< H2 > 4

having been speculating in stocks and currencies for so many years, I can't help thinking about whether it's better to play bitcoin or stocks? In this paper, the author does not intend to say this problem from the perspective of the text, after all, everything in the market has good and bad, play that is not important, play that can earn real money is the most important. As long as you can make money, you can play anything you like. I am now a loyal player of bitcoin (I like to play, for it...

Tags: play bitcoin, play stock

< H2 > 5. 796 exchange Zhu Rong: on the rise and fall of bitcoin price and qualified investors, Bitcoin rose to 8000 yuan. Shangfang is precisely because in the relevant domestic policy vacuum period, as bitcoin investment heats up, the media pursues popularity in order to attract attention from the bottom to the top, and a large number of positive reports continue to appear on CCTV, which makes bitcoin increase social attention overnight, thus attracting a large number of investment capital inflows, Bitcoin price

< H2 > 6. Investigation on the causes of bitcoin crash: high leverage eventually leads to bitcoin crash

after four months of silence, bitcoin and other virtual currencies once again attracted the attention of the market because of the crash. Analysts said the reason for bitcoin's collapse was e to leveraged trading. On Monday night, the price of bitcoin on btc-e, a bitcoin trading platform, dropped rapidly to $309, nearly 40% from the highest price of $498 on that day. However, after the slump, bitcoin prices slowly rebounded. The new hope of electronic currency: the political and economic changes behind the rise and fall of bitcoin. Edwin van der Brom, a former bitcoin trader and Dutchman, is in endless regret these days. Three years ago, Edwin, who had just received the master's degree in finance and economics of Erasmus University Rotterdam,

tags:, the rise and fall of bitcoin, electronic currency, Edwin

8. "bubble curse" -- the five major reasons for bitcoin to give investors some doubts.

... The secrecy and performance limitations of block chain technology make it most suitable for the upward trend of corporate bitcoin. Let investors think that the bull market of cryptocurrency has come. But skeptics point out that the bull market will not come so soon. From April to may 2017, this digital currency rose more than 100%. Bearers believe that this market is familiar. From March 2017 to...

Tags: bitcoin investment

< H2 > 9. David Berger: the bitcoin ecosystem lacks trust

... David Berger, CEO and founder of the digital currency Committee (DCC), concted an interview. David Berger talked about the main challenges bitcoin faces, Why let people build their own businesses based on blockchain technology and why trust is crucial to the bitcoin ecosystem. Cointelegraph (CT): can you talk about the difference between the responsibilities of the digital currency Committee and the bitcoin fund? David b...

Tags: bitcoin ecosystem

< H2 > 10? BTCC spot trading day K-line chart shows that last Saturday (October 22), bitcoin prices rose from 4296 to 4539, a daily rise of 5.7%. The highest increase was from 22:45 to 23:20 on Saturday night, rising from 4354 yuan to 4539 yuan, the highest at present! In less than an hour, the price of bitcoin rose 185 yuan! In less than two weeks, the price of bitcoin broke through 4300 on October 11

5.

Heavy weight! What kind of information is released behind the people's Daily's re evaluation of special currency

April 18, 2018

as the wind vane of policy, people's Daily has a self-evident influence on all walks of life. On April 16, people's Daily published a comment on bitcoin and other digital currencies, to the effect that it is difficult to ban digital currencies completely, and landing payment should be opened. For a time, it triggered a big discussion on policy risk in the currency circle. Why did people's daily comment on bitcoin again? Does this mean that China will lift the ban on bitcoin? Today, I'd like to analyze the information hidden behind the people's daily article

therefore, it is boldly predicted that there can only be one form of bitcoin and blockchain enterprises in the future, that is, the form of Instrial Park supported by the state. As the saying goes, bitcoin is not a good blockchain if it does not solve the employment rate. At present, the whole market is not mature, and the state will not prohibit OTC trading for the time being. However, with the increasing economic risks, the supervision of the currency people will be more and more strict

6. Unlike traditional stock exchanges, digital currencies such as BTC bitcoin can be traded on all exchanges for 7x24 hours. The characteristics of T + 0 trading mode and no price limit system make the price of bitcoin fluctuate greatly. Contributor: bitewang

7. It can't be simply attributed to the exchange. Sometimes there are sudden short-term fluctuations, and the exchange does participate. But the main topic is about the monthly time span, which is difficult for the exchange to control. It is more the result of the joint operation of hot money and large institutions. However, the sharp decline of the overall currency value can't be separated from the basic economic principle: the relationship between supply and demand, This is beyond anyone's control

8. First of all, we need to understand the reason why bitcoin soared in the early stage. Bitcoin's early rise was mainly e to market speculation. It can also be said to be overheated investment. Overheated investment leads to the face value of bitcoin far exceeding its intrinsic value. In this case, the negative news of the market will lead to profit taking of investors. After the formation of a certain scale, it will turn into panic selling of bulls, resulting in a sharp drop pattern

9. Yes, it can always be invested.