At the time of the bull market, why did the cryptocurrency crash and fall? « Naijatechnews

At the time of the bull market, why did the cryptocurrency crash and fall?

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Yesterday morning, the global cryptocurrency market experienced a crash.

Calculated by the 24-hour rise and fall, Bitcoin once plummeted by more than 16%, Ethereum once plummeted by nearly 20%, Binance Coin once plummeted by 17%, and Ripple had plummeted by 26%.

This news once swept the screen inside and outside the circle, and even boarded the hot search list.

A full flash crash within an hour, Bitcoin’s biggest drop since April

According to Huobi, in the early morning of April 18, the price of Bitcoin rose all the way to 60945 US dollars. However, at around 10 o’clock, Bitcoin fell below $59,000, the first time since April 11. Subsequently, Bitcoin continued to decline, falling to a minimum of $50,880 after an hour, a daily drop of more than 15%, the largest drop since April.

At the time of the bull market, why did the cryptocurrency crash and fall?

Although the price rebounded slightly, it is worth noting that behind the Bitcoin price crash, the digital currency market has plummeted across the board.

Mainstream currencies including Ethereum, EOS, and Cardano all plummeted by more than 10% at the same time yesterday morning. Among them, the price of Ethereum once fell to 1940 US dollars, plummeting nearly 20%.

At the time of the bull market, why did the cryptocurrency crash and fall?

This also brought huge losses to the entrants. UAlCoin data shows that a total of over 49.3 billion yuan in virtual currency contracts broke out in one day, and more than 70,000 heads were bloodbathed. And this news also went out of the circle and boarded the hot search rankings.

Multi-party positive, cryptocurrency is currently in a bull market

In the past two months, the cryptocurrency market has seen a collective rise and prosperity.

Take Bitcoin as an example. Since it broke the $50,000 mark in early March, the price of Bitcoin has been steadily higher than this level, and the bulls have even pushed the price to a record high close to $65,000.

Behind the scenes is the good news that PayPal has entered the cryptocurrency field, and more importantly, the attention of traditional capital.

In February of this year, JPMorgan Chase, the largest financial services institution in the United States, will launch an encrypted digital currency, JPM Coin, for instant settlement of payment transactions between customers; including Goldman Sachs and Citigroup Of large banks have also expanded their service offerings to cryptocurrencies.

The power of the science and technology circle is also following up simultaneously to help the cryptocurrency out of the circle. One of the most interesting is the announcement submitted by Tesla to the U.S. Securities and Exchange Commission (SEC) on February 8th that the company has purchased $1.5 billion worth of Bitcoin. Tesla CEO Elon Musk (Elon Musk) Musk) has repeatedly advocated Bitcoin in Twitter and interviews. In China, Meitu, a listed company, invested US$90 million in cryptocurrencies, sparking discussions.

What excites practitioners most is that Coinbase is listed on NASDAQ for the first time in the crypto industry.

And these comprehensive good news have promoted the bull market of digital currency in the past two months, and the price has risen steadily.

Why did it plummet? Policy direction is the main reason

The sudden plunge this time is due to many reasons.

The first to bear the brunt is the issue of policy supervision.

According to Yingwei Financial News, several online reports attribute this round of decline to market speculation that the U.S. Treasury Department may crack down on money laundering through digital assets. It is understood that Fed Chairman Powell recently publicly stated that he does not support virtual currencies, and he believes that they are not really actively used for payment.

In addition, Lagarde, President of the European Central Bank, targeted Bitcoin’s role in promoting criminal activities in January this year, saying that the cryptocurrency has been promoting “interesting business”; the Central Bank of Turkey issued “regarding the prohibition of payment in payments”. Regulations on Crypto Assets” announced that it would prohibit the use of cryptocurrency payments from April 30. The government also pointed out that cryptocurrency wallets are easily stolen, and irrevocable transactions are also worrying; in March 2020, the Supreme Court of India rejected The policy introduced by the Central Bank of India in 2018 prohibits banks from participating in cryptocurrency-related transactions. This news led to the influx of Indian investors into the cryptocurrency market, but then the Central Bank of India once again expressed concerns about cryptocurrencies, and some officials disclosed that India will propose a new bill to block all cryptocurrencies…

Policy supervision has always been the most serious problem faced by cryptocurrencies. In addition, the CEO of Coinbase, which was listed just above, sold the company’s stock for 290 million U.S. dollars, and the accumulated internal cash was over 4.6 billion U.S. dollars; Coinbase’s chief financial officer Official Alesia Haas cashed out about 99.32 million U.S. dollars at a price of 388.73 U.S. dollars. These actions have caused panic in the industry.

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