Bitcoin plunged Wednesday to $4100 in 2018, exacerbated by the crypto currency investor’s nightmare

In December 2017 after the surge in the value of bitcoin, continued to decline, nearly $20 thousand. As of Tuesday, a bitcoin transaction price is about $4400 – as of 21 am Beijing time 4:30, coinbase platform bitcoin quote below $4100, is the lowest level this year.

Bitcoin is not alone. Other popular encryption currency in the crash this week hit a new low. Digital encryption currency is a currency form called a block chain based on computer technology, which compete with each other to solve complex mathematical problems. The calculation of the ability to create a distributed network, ledger – safe and transparent is usually called a block chain – can build bitcoin in its application.

Bitcoin enthusiasm leads to investment of encryption currency and block chain related startups and speculative boom. More and more people hope that prices will attract banks and government agencies, which also helps to further provide legitimacy for the bitcoin. Some analysts have predicted that the value of bitcoin may reach $100 thousand.

However, due to the bitcoin before prices is exaggerated, more and more people doubt and increased prices. The Justice Department is currently investigating whether the high market value of last year bitcoin traders to manipulate the market results. The investigators speculate that some traders use Tether encryption (a prediction of other encryption encryption currency for currency prices) to promote the rise of bitcoin.

LoyalCoin president and CEO Patrick Paul Palacios (Patrick Paul Palacios) is a company based on the blockchain incentive plan of the company, he said the investigation is one of the many reasons for bitcoin decline.

“This is a combination of all these factors, including of course everyone panic.” Palacios said.

Palacios added, when the rapid rise in the price of investment bitcoin people may not be ready to fall, cause people to sell investment more volatile.

“They do not understand how the work of encryption,” Palacios said. “The novice does exist a lot of volatility.”

Blockchain Intelligence Group’s executive chairman and co founder Shone Anstey explains how quickly the novice investors last year bitcoin bitcoin investment, as investors try to lock their profits before they disappear”.

“Fast money coming in,” Anstey said. “Fast money was taken.”

Although the bitcoin value decreased, but Anstey warned not to calculate encryption currency or bottom block chain technology.

“We overestimate the technology in the short term, but in the long run but greatly underestimated them.” Anstey said.

Although some analysts predict long-term recovery, but other analysts said that might change at the end of 2018.

Wall Street strategist Tom Lee in an interview with CNBC on Tuesday, he insisted on bitcoin $15000 year-end forecast.

Lee predicts that “incoming wave mechanism” and “supervision by definition” is the ultimate factor of bitcoin market prices pushed up again.

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