Bitcoin digital currency market fell continue to shrink the size of over eighty percent

Original title: bitcoin fell continue hard bottom digital currency market size has shrunk over 80%

11 June 25, bitcoin dropping to $3500, the global digital currency market collective reproduction sharp sell 8500 billion market size than the market value of the vertex has shrunk more than 85%. Insiders said, with tighter regulation, pay for universal difficulty and other factors, digital currency downward trend is likely to continue, IT manufacturers will suffer.

Bitcoin prices staged “big diving”

Since 2018, bitcoin prices continued to fall, recently staged a “big diving”.

A number of digital currency exchange data show that 25 bitcoin intraday fell below $3500, its lowest level since August 2017, then pulled around $3800.

In December last year, due to the influx of retail investors, bitcoin reached a peak of $20000. With this slump, many media said bitcoin bubble is bursting”.

According to Bloomberg statistics, from from November 16th to 24th, five bitcoin trading day decline has reached 24%, for the year, its worst week period of continuous decline is also up to 12 days. With bitcoin prices plummeted, turnover has shrunk, even less than at the peak of 1/7.

CNBC quoted analysts view that new entrants to the market confidence, may not be able to support bitcoin currency, the sell-off may be around $3000.

Bitcoin crash also led to other encryption currency fell sharply. CoinMarketCap data show that the current market value of encryption currency has dropped by about 120 billion dollars, $850 billion compared with the beginning of this year has shrunk severely.

Oanda Asia Pacific Trading Department Director Ines said recently, bitcoin fell continuously, but the hard bottom. “There are a lot of investors in the current market, but if bitcoin continues to $3000 close, will inevitably lead to panic and flee”.

He also predicted that the short-term trading range at $3500 to $6500, but does not rule out the next year in 1 to $2500.

“Unlike other asset attributes, bitcoin is not gold.” He added.

By multiple factors suppress currency

The industry believes that the bitcoin crash is the result of many factors together, and regulatory upgrades and money will continue to put pressure on the currency bifurcation.

The large block chain project there is a serious bubble, in block chain infrastructure is not perfect, the market is expected to continue to push practitioners highly unrealistic, eventually encounter real combat, resulting in the continued loss of market confidence.

Recently released a research report shows that the company last year, Ernst & young, analysis of 372 pen (ICO) for the first time issued tokens, 30% lost “almost all” value, and in the use of funds raised by the ICO company in 71%, the company has yet to launch a prototype product.

In addition, due to the bitcoin market is a capital market, volume is relatively small, with large cash users zapan, also easy to cause sharp fluctuations in currency price. So the property industry for its popularization and worried about the prospect of payment.

The global regulators are also the layout of digital currency management system.

According to the relevant provisions of the people’s Bank of Chinese, bitcoin is not issued by the monetary authorities do not have the law, such as monetary compensation of the mandatory property, not the true meaning of money. From the nature point of view, bitcoin is a specific virtual goods, does not have legal status and monetary equivalent, can not and should not be used as currency in circulation in the market.

However, in recent years, some people under the banner of “financial innovation” and “blockchain” banner, through the issuance of the so-called “virtual currency” and “virtual assets” and “digital assets” to absorb funds, against the public interests. Therefore, China people’s Bank and other seven departments have stopped posting all kinds of tokens issued to finance, and to remind the public rational view of block chain, establish a correct concept of money and investment philosophy.

Hongkong Securities Regulatory Commission announced this month, plans to invest in digital currency exchange and digital asset fund regulation is to protect investors.

The SFC said it is considering a “sandbox” or the use of existing laws and regulations related to digital asset risk adjusted, supervision on the implementation of digital currency exchange and encryption portfolio of assets management company. On the basis of the present rules, unless the digital assets are classified as securities or futures contracts, or digital currency transactions are not regulated by the sfc.

Japan in 2017, and “offbeat bitcoin currency” exchange must accept the FSA’s supervision, and the SEC said earlier this year, digital currency exchange may belong to the extent of their competence.

In November, two in 2017 to raise funds through the sale of ICO encryption currency company by U.S. regulators ordered to return funds to investors, because it has no ICO registered as securities. The market worried that other similar companies will be forced to follow suit.

The currency also hit the currency value bifurcation and investor confidence.

“Bitcoin cash” before the announced splits into two different versions. According to reports, the two camps is frantically in the block chain blocks to establish control. This is an expensive task, two groups have been suspected of hoarding a large number of bitcoins, they can sell these assets to provide financial support for their actions.

The British “Financial Times” published an article that is why this dilution ultimately doomed to failure of the crypto currency. Unlike bitcoin to physical gold imitation and defeat, this number does not exist the scarcity of real gold. Although the original bitcoin can only have 21 million, but there is no limit to the number of versions can be split.

Affected by the impact of IT vendors

The number of IT equipment manufacturers will be attributed to the decline in the performance of digital currency market downturn impact.

This month’s disappointing performance, the company will be attributed to the poor performance of crypto currency mining activities gradually reduced in chip inventories, “encryption sequelae”.

The second quarter, NVIDIA’s digital currency “mining” once a deep business revenue fell 70% to 1.16 billion dollars. At that time the company executives said, with the digital currency prices are expected in the future, this kind of related business income can be ignored. “”.

The three quarter, NVIDIA acknowledged that PC OEM revenue fell nearly 40%, and generated $57 million in costs associated with the old product, and this is mainly due to positioning in the encrypted digital currency mining graphics chip products demand drag. Due to the excessive development, resulting in excess inventory.

One of Asia’s largest technology company TSMC in a third quarter is expected in the fourth quarter, “continued weakness” encryption currency mining demand will offset part of their growth.

In addition, the number of market weakness, some companies affected the pace of expansion. This month a digital currency exchange Coinbase clarified that the recent should not IPO. The original CNN has exposed the company intends to IPO.

Insiders said that at present the market of digital money belongs to the bear market, the timing is wrong, is not conducive to the high valuation of newly listed companies.

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