Bitcoin fell more than 10% encryption currency markets continued to deteriorate

Bitcoin prices fell sharply again at the beginning of this week more than 10%, the continuation of a substantial decline in momentum, ignored a modest rebound in equities and oil prices.

On the weekend of bitcoin prices fell below $4000, has fallen below $3650 to late Monday. Bitcoin value has shrunk nearly 1/3 in seven days last week, one of the weekly performance as the worst ever. At present, the digital currency has been compared to the end of the year to $20000 in 80% high evaporation.

The letter quoted NEO Global Capital is a founding partner of Tony Gu said, due to recent bitcoin market rout is only one, that is “panic”.

The trading volume decreased, many speculators have fled. And this month Bitcoin Cash bifurcation caused unease. Large investors will sell bitcoins to make up for its Bitcoin Cash holdings shrink risk sentiment impact prospects.

Now yiboweiping another encryption currency interest seems to weaken in the miners. The miners by mining equipment solve complex equations, thus creating a new digital currency. The cost calculation, the miner’s so-called “stress” (hash rate) has begun to decline.

Although encryption currency prices fell, but this year most of the time is that people have been on the rise, the market is still optimistic about. But according to the encryption currency wallet service and data company Blockchain Ltd. The data, the index fell sharply in recent weeks. This reflects, added to the number of miners in the network to reduce encryption currency.

At the beginning of 500 venture capital fund Startups partner Edith Yeung said, the driving factors of bitcoin value has been a strong supply and demand; if the miners stop mining, bitcoin will not run, then the whole market will lose confidence, if there is no confidence, people will feel panic, will further exacerbate the sell-off.

Reboxetine currency and etheric coins and other digital currency also fell sharply. Study on the website CoinMarketCap data show that the encryption currency overall market value is now about $130 billion, compared with the January record of more than $800 billion to record greatly diminished.

Now the popularity of the deterioration in contrast to a year ago, when bitcoin by individual investors frenzy, prices are soaring. Gu’s Singapore blockchain investment fund manages about $400 million in assets. He will pick up the market optimistic. He said, when the blood flowing is making money.

but Some other person pain is not over.

New York Vc firms Union Square Ventures partner Fred Wilson wrote in his forum, look at the main encryption monetary assets price chart is very difficult without flinching. He will be compared with the case when the technology bubble burst.

At that time, from 1999 December until the end of October 2001, Amazon (Amazon.com Inc. The market value has shrunk to 95%). But the online retail giant already from the disaster recovery. Wilson said he believes the situation could get worse before getting better.

(source: global foreign exchange)

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