Reasons for the collapse of virtual currency in 2019

1.

Stupid tax

reason 1: the volatility of virtual currency is too large to become a trading means. The huge volatility problem is structural e to its fixed supply and unstable demand. The flaws in this design mean that it will not be a winner in the cryptocurrency war

reason 2: the energy consumption of virtual currency mining is a waste

reason 3: the security of virtual currency is weak, and quantum computing may make it worse

reason 4: the rise of virtual currency promotes illegal activities and redistributes wealth from the formal economy to the shadow economy. It's only a matter of time before the government gets involved

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2. The biggest winner is the US investment bank represented by Goldman Sachs.

3. Because the virtual currency market is graally expanding in 2019, investors have been looking for the most potential virtual currency. bitcoin is the most familiar virtual currency in the world, which can be easily traded in the domain kingdom. As long as investors judge the rise and fall direction of bitcoin price, they can make profits correctly, which is very suitable for novices.

4. The global economic downturn has brought great pressure on the stock market and other financial markets. The currency market does not have a good bottoming process at present. It is likely to hit a new low again and enter the bottom grinding stage after bottoming out.

5. 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

6.

According to

crypto cred, this situation may indicate that there is not enough momentum to do long in the market

in addition, crypto cred also believes that the consolidation of bitcoin in the previous three months is a range consolidation, not a triangle consolidation, so once the horizontal support line is broken, the market sentiment will become very pessimistic

crypto cred also pointed out that in the daily K-line chart of bitcoin in September, the closing price of 24 days was lower than that of the previous day, which also showed that the whole trend was developing in a bad direction

Future trend, how to develop< p> Ledger status points out that bitcoin's stepping back into the $8000 or even lower range is likely to prepare for future actions

he believes that bulls need to take back several key positions first. First, bitcoin needs to go back above $8400, which is the 200 day moving average

he explained that if the price of bitcoin could get back to $8400, it could rise rapidly and retest $9400. After that, if bitcoin can further break through the previous integration range, it is very likely to create a new annual high

However, unfortunately, the 200 day moving average is becoming a strong resistance line. If bitcoin fails to break through this position, it is likely to go further down to the low of $6000

however, ledger status also points out that even if bitcoin goes further down to $6000, technically speaking, the long-term bullish trend has not been broken. He said,

"I remain bullish for a long time, unless bitcoin falls below its 200 week moving average (currently about $4600 and is still climbing), which marks the bottom of the first two bear markets."

finally, ledger status said that if the price of bitcoin can rebound above the 200 day and 20 week moving average, it will be quite optimistic for the market

up to now, the price of bitcoin is US $8070.5, and the market value of bitcoin accounts for about 67.1% of the total market value of the whole cryptocurrency

7.

the central bank operates in the foreign exchange market and provides foreign exchange liquidity to the market

a spokesman for the central bank said that China's foreign exchange reserves fell sharply in August, which was the result of multiple factors. According to the data released by the central bank earlier, China's foreign exchange reserves decreased by 93.9 billion US dollars in August, a record monthly decrease

from the change of foreign exchange reserves in August, there are three main influencing factors: the central bank operates in the foreign exchange market and provides foreign exchange liquidity to the market; The foreign exchange reserve entrusted loan project made some capital withdrawals in August; In August, the prices of some major financial assets in the international market recovered to varying degrees

Further information:

related information of RMB exchange rate:

1. China's economy will continue to maintain medium and high speed growth, current account will maintain surplus, and foreign direct investment and foreign investment will continue to grow. China's foreign exchange reserves are abundant. With the continuous improvement of RMB exchange rate formation mechanism and the promotion of RMB internationalization, it is normal for China's foreign exchange reserves to increase or decrease in the future

2. When the foreign reserves decrease to a certain extent, the central bank will no longer have room to intervene in the foreign exchange market by consuming the foreign reserves, and it is expected that the central bank will allow the graal and orderly depreciation of RMB in the future

Due to the strong expectation of the Federal Reserve to raise interest rates, the pressure of RMB devaluation continues to increase. Many institutions predict that with the further release of RMB devaluation pressure, the central bank will continue to take action to control the exchange rate, and the stock of foreign exchange reserves will be reced in the future

8. According to the market sentiment, the market policy is decided in many aspects

9. The RMB has not depreciated in the past 19 years. I personally feel that it has not been promoted, but it has not depreciated