Bitcoin’s amplitude fluctuates greatly. What is the logic behind it?

Bitcoin must have been heard of. Maybe many people don’t know how bitcoin is traded or even what it is. But the price of bitcoin has skyrocketed and plummeted. I’m afraid many people know it. In particular, on January 11 this year, the price of bitcoin fell from nearly 40000 US dollars to 30000 US dollars, a drop of nearly 20% in one day, resulting in the explosion of 2 million people, and the relevant amount reached 14 billion yuan. The bitcoin deal, which looks like a gamble, is full of huge bubbles. So why is bitcoin so volatile? What are the risks of holding bitcoin? If we look back and forth at the past market of bitcoin, it is really like a roller coaster. In the past year, bitcoin has gone up and down by more than 10% a month for eight months. Even earlier, in December 17, bitcoin fell 80% in a year. At that time, it set a record of $19783, then fell all the way, once falling below $3000. In fact, for bitcoin, risk aversion is one of the reasons for the sharp rise and fall of bitcoin. This year, Xinguan’s condition continues to be serious, and the global economy continues to be depressed. Many investors are trying to avoid risks. The need for cash hoarding has evolved into the need for gold and bitcoin. This has led to a large number of individual investors and institutions to buy bitcoin. At the same time, fewer and fewer people are selling, which has led to a sharp rise in bitcoin prices. But it also faces a huge bubble in bitcoin. Due to the impact of the epidemic, the global economy will continue to be depressed in the past two years, so bitcoin’s characteristics of rapid rise and fall may not disappear. There are also many people who are optimistic about bitcoin, and some even predict that the price of bitcoin will increase several times in the next few years. But that doesn’t mean you can invest. At the same time, bitcoin is difficult to become a legal payment method, which is difficult to get common recognition in the world. So for us ordinary investors, bitcoin’s sharp rise and fall, we still have to hold a normal heart, just have a look.

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