Bitcoin fell 4100 U.S. dollars mark the blockchain 3 times coming?

For months, bitcoin in the quiet period, the price has been hovering around $6500, this is perhaps the industry speculation “signal finally bottomed”. However, last week, bitcoin suddenly open again “crash mode”, within a week fell nearly 1/3, and caused the other encryption currency fell sharply.

According to CoinMarket data show that in November 20th, bitcoin fell more than 16%, fell below $4100, the lowest level since October last year. Some analysts believe that bitcoin prices will continue to fall, and then fell to the bottom of the price of $3000. As of press time, bitcoin prices rebounded to $4574.

Multiple bad driving

At present, analysts generally believe that the sell-off triggered fuse is the encryption monetary regulatory pressure and bitcoin cash (BCH) hard bifurcation event. In November 16th, the U.S. Securities and Exchange Commission (SEC) announced the punishment will not be ICO (the first two tokens on sale) encrypted currency as the securities company’s registration, ordered Airfox and Paragon to return funds to investors. The two companies have a break of 90%, the probability of bankruptcy liquidation situation.

It is reported that this is the first time for SEC to punish illegal encryption of monetary items. Regulatory uncertainty has always been shrouded in the shadow of encryption currency. SEC in a statement that day the regulatory scope includes digital asset issuance and trading activities”. It is reported that the United States not only digital assets as securities by SEC regulation, but also by the Commodity Futures Trading Commission (CFTC), IRS (IRS), the financial industry regulatory authority (FINRA) and other regulatory authorities. Tighter regulatory environment, so many companies are facing a series of legal risk.

The United States government censorship intensified bitcoin Tuesday decline. According to reports, bitcoin slump last year, the U.S. Justice Department is investigating whether the sharp rise of bitcoin is driven by manipulation.

Another blow to the encryption currency outlook event, is the largest bitcoin bitcoin currency bifurcation (BCH) bifurcation hard cash. Bit, CEO Craig and Steven Wright Jihan Wu Australia (circle called “Macao Satoshi”) due to BCH “expansion project” to reach an agreement, the two part company each going his own way. “Hard to bifurcate” Chibidaigou concerns existing encryption currency value.

However, it seems in the original industry information center, Ministry of Economic Research Institute, industrial fire currency university president Yu Jianing, the actions of SEC and BCH hard bifurcation is not the major reason for the current encryption currency fell. “The United States simply reiterated the regulatory principles, not the introduction of new measures. The basic block chain is the consensus, the bifurcation is normal, does not fundamentally shake market confidence.” He told reporters the 21 century economic report.

Yu Jianing believes that the current sell-off does not mean that bitcoin or Ethernet square “failure”, there are many problems, such as fraud but they carry control programs and applications, leading investors, participants vote with their feet and leave the market.

In the view of BOCOM managing director and chief strategist Hong Hao, the bitcoin, oil prices are expected to rise, the stock market slump, liquidity tightening in response to the Fed rate hike. “Bitcoin this asset liquidity is very sensitive.” He told the 21 century economic report reporter said, “after the Fed chairman hinted 12 month interest rates continue to rise, raising interest rates next year uncertain prospects, bitcoin has entered a new round of crash.”

Prices will continue to fall

Technical analysts said, in the hard hit, bitcoin has failed to achieve a strong recovery, which indicates that prices will fall further. The risk investment fund alphablock partner Jon Pearlstone believes that if bitcoin prices fell below $4000, then bitcoin finally hit bottom price or for $3000.

According to past experience, only a large number of digital currency exchange, pool bankruptcy can ‘bear market bottom’, it should be a plus a ICO project of large-scale liquidation, ICO projects, investors run away.” A senior game player on twenty-first Century bitcoin Economic Herald reporter said.

At present, bitcoin prices have been lower than a lot of mine mining costs, in recent months have been small, high cost exchange pool shut down, a large number of tokens to the issue price below. It is reported that Giga Watt has submitted an application for bankruptcy, the assets of less than $50 thousand, while the United States mine giant launched ICO, has raised millions of dollars.

“The tide is receding, but should not end, the market needs time to squeeze the bubble, with a round of 84% decline, there is still room to decline.” The game player said bitcoin.

Bitcoin at the bottom? Currency circles combed since bitcoin before the birth of several rounds of price: 2011 from $32 to $2 highs lows for 5 months, down 94%; 2013 years from a high of $266 to $66 with low 3 months, down 75%; 2013-2015 years from a high of $1242 to $198 with low 20 months, the decline of 84%; the 2017 12 reached a new high of $19666 to $4500, down 77%, which lasted for 11 months.

However, in recent years the birth of digital currency bitcoin exchange compliance, futures trading products, make a lot of money holders bitcoin confidence. Although SEC has repeatedly refused to a number of agencies bitcoin ETF fund application, but the regulatory maturity may make the “approved” period.

Institutional investors bitcoin interest unabated. Just last month, Fidelity Investments (Fidelity Investments) announced that will release an independent company – fidelity digital assets for institutional clients transactions and store encrypted monetary assets. The company’s director Tom Jessup (Tom Jessop) told the media that the mechanism of encryption of monetary assets there is demand, family offices, hedge funds and other sophisticated investors have begun to consider in this field.

However, the recent volatility in the market and industry chaos, caused people to “encrypted currency can be reliable hedge”. “Bitcoin and a large decline in such etheric Fang, is a sign of the end of the 2 block chain, and indicates the arrival of 3 times.” Yu Jianing of 21 century economic report reporter said.

He pointed out that the blockchain 2 era, many projects lack of real assets to support and lack of supervision, in a “Jungle”, the market was proven to be inefficient. “Digital assets” is an irreversible trend, the current market clearing means “industry chain block” era is coming, the future of digital assets and industry depth bound, market regulation will be more perfect.

(source: the 21 century economic report)

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