Japan and South Korea shrinking trading volume Bitcoin fell below 10,000 US dollars
Bitcoin rushed for the first time in November last year, $ 10,000, mid-December soared to 19,800 US dollars, and now back to $ 10,000 psychological support, some experts expect the support if the substance below the break, the next support is $ 6,000.
The second-largest beechi unit collapsed by as much as 30% to $ 854 in up to 24 hours, a 40% drop from the peak of $ 1,396 hit on January 13, with the latest offer back to the $ 1,000 mark.
Ripple, the third-largest, plunged 46%, falling below the 1-dollar mark at around 90 cents a share, with the latest offer back to $ 1.2.
CNBC News reported that the recent major setback for cryptocurrencies was mainly related to the once again proposed by the South Korean Attorney General to ban local cryptocurrencies since the ban on China and Vietnam in the Asian markets has emerged but the cause for the overall plunge on Tuesday is not clear.
Commercial insider websites reported that the volume of cryptocurrencies in Japan and South Korea, which had been in long-term premiums, have shrunk dramatically and fell to below 30% of total volume early in the morning, alarming the market and most likely related to the overall setback on Tuesday .
Asian countries have gradually resorted to control is an important fuse. Neil Wilson, an analyst at brokerage firm ETX Capital, said on Tuesday that Bitcoin is facing regulatory controls by governments and plans to ban Bitcoin transactions in addition to China’s closure of bitcoin mines, with recent developments showing the future There will be greater regulatory pressure on regulation
In the past year, many prominent professional investors, bankers and traders, including legendary Buffett, JPMorgan CEO JamieDimon and financial supermodel RayDalio, all strongly criticized bitcoin as the digital currency.
Many experts believe that bitcoin futures trading by the Chicago Board of Trade (CBOE Future Exchange) and the Chicago Mercantile Exchange (CMEGroup) has driven the extreme volatility of Bitcoin.
In just over a month, bitcoin nearly broke through the threshold of $ 20,000, and then quickly fell back to just $ 12,000 for two weeks, now around $ 12,000.
The value of bitcoin is mostly based on popularity rather than any actual tangible value or utility. Although widely declared as a transformative currency, it is clear that Bitcoin as a medium of exchange has not been successful.
A study of Bitcoin in 2017 by JPMorgan shows that Bitcoin is accepted by only three of the top 500 retailers. To a certain extent, this can be attributed to the astonishing volatility of Bitcoin, which leaves people with less confidence in the value of Bitcoin and makes it almost impossible for suppliers to price their products accurately.
In addition, bitcoin is not as scarce as many experts think. The blockchain technology on which Bitcoin depends, anyone can create a new cryptocurrency with the proper skills, abilities and funding. In the past year, the number of cryptocurrencies has grown exponentially.
At the time of writing, there were 1,384 cryptocurrencies, up from 1 in 2009, 4 in 2011, 6 in 2012 and 13 in 2013. Most cryptocurrencies will not appear until the second half of 2017.
What is even more thought-provoking is that in the second half of 2017, the first coin issuance (ICOs) fund has exploded. In November last year, ICO attracted 743 million U.S. dollars, up 227 million U.S. dollars from the previous month, nearly 37 times higher than the same period of last year.
Buffett has said financial chief crook: Encrypted currency will usher in a terrible ending.
As bitcoin prices have plunged, investors can not help but wonder how bitcoin should be shorted, but finding a low-cost opportunity is extremely difficult. The following is the Bitcoin Investment Trust (OTCQX: GBTC)
However, short trusts are not cheap. At the beginning of December 2017, the fee for shorting Bitcoin was almost 20%, a figure that could reach about 50% since the start of bitcoin futures trading.
Riot is a biotechnology company focused on providing technical expertise and support for the blockchain ecosystem. It focuses on strategic investments in bitcoin and other cryptocurrencies and companies that create these currencies. Its stock market has risen about threefold since it added the blockchain to its name, but its share price has seen a net loss since Riot began its cryptocurrency business.
In this sense, Riot’s focus on profiting from the asset bubble may be an investor’s bid to short the bitcoin.
In summary, the analyst CaimanValores believes that bitcoin and cryptocurrencies are in a huge bubble and the bubble is coming to an end, advising investors to avoid risks in a timely manner.