The trading curve of Bitcoin has been smashed into a "deep pit".According to data from the overseas Bitcoin trading website Coinbase, around 9:40 on May 19th, Bitcoin was quoted at 266200
The trading curve of Bitcoin has been smashed into a "deep pit".
According to data from the overseas Bitcoin trading website Coinbase, around 9:40 on May 19th, Bitcoin was quoted at 266200.47 yuan, which is equivalent to 41421 US dollars at the real-time exchange rate. The 24-hour decline was 8.39%. This is also the lowest price level since February 8th this year, and a month ago, Bitcoin prices were at a record high of $65000.
At the same time, the prices of various virtual currencies also declined. As of the press release, the 24-hour declines of Ethereum ETH, Bitcoin Cash Cash BCH and Litecoin LTC were 3.49%, 8.00% and 5.46% respectively.
Coinbase itself, as the 'number one crypto asset', is not optimistic about its stock price. On April 14th, Eastern Time, the trading platform landed on Nasdaq, with an opening price of $381, an increase of up to 52%. Subsequently, Coinbase's stock price quickly soared to $429.54, an increase of 72%, with a market value exceeding $100 billion. However, apart from the three-day increase that started on May 7th, the stock price basically turned downwards. As of May 18th, the closing price was $239, a decrease of 3.72% on the same day, and it was almost half of the previous highest stock price.
According to market research firm Arcane Research, the decline in market sentiment occurred after the sharp drop in Bitcoin prices over the past week. After the price of Bitcoin fell below $50000 last week, the Bitcoin market has turned to "extreme panic".
Source of panic
The sudden decline in the stock prices of Bitcoin, other virtual currencies, and trading platforms is due to both regulatory and market factors.
Recently, the prices of virtual currencies have skyrocketed and plummeted, and there has been a rebound in virtual currency trading speculation, seriously infringing on the safety of people's property and disrupting the normal economic and financial order
On May 18th, the China Internet Finance Association, the China Banking Association, and the China Payment and Clearing Association jointly released a notice on preventing the risk of virtual currency trading speculation.
The announcement emphasizes that financial institutions, payment institutions, and other member units shall not use virtual currency to price products and services, and shall not directly or indirectly engage in business related to virtual currency.
Banks have also taken the lead in paying attention to Bitcoin's infringement of the status of the Chinese yuan as a legal currency and its money laundering risks. For example, China CITIC Bank announced on April 22 that:
"In order to protect the property rights and interests of the public, maintain the status of RMB as the Fiat money, and prevent money laundering risks, from now on, no institution or individual shall use our account for the transaction capital recharge of Bitcoin, Litecoin, etc., withdrawal, purchase and sale of relevant transaction recharge codes, and shall not transfer relevant transaction capital through our account. Once found, our bank has the right to suspend transactions in relevant accounts and cancel relevant accounts And other measures
Musk's Star Effect
From the market situation, Tesla CEO Musk, who had previously been a Bitcoin platform, also experienced a attitude reversal.
On the early morning of May 17th in the United States, a social media user named "cryptowhale" left a message to Musk, saying, "If Tesla has sold its remaining Bitcoin holdings, Bitcoin owners (holders) will definitely slap themselves in the face next quarter (after quarterly financial reports are released)." Musk replied to this tweet with the word "Indeed". Musk's comments were interpreted by the market as suggesting that Tesla may or has already sold its Cryptocurrency, which made Bitcoin fall to its lowest level since February.
However, on the morning of May 17th, Musk once again stated on social media that Tesla had not sold any Bitcoin.
Musk's attitude towards virtual currencies has been fluctuating. On March 24 this year, Tesla CEO Elon Musk said on social media: "Now you can buy Tesla with Bitcoin." He also added that Tesla uses internal and Open-source software to directly operate Bitcoin nodes. Bitcoin paid to Tesla will continue to be retained in the form of Bitcoin, rather than converted into legal currency. He also said, "Later this year, Bitcoin payment functionality will also be available outside of the United States." Affected by the positive news, Bitcoin surged nearly $2000 in the short term on the same day, with a quote of $55600.
But later, Musk wrote that the excavation of Bitcoin itself was not environmentally friendly, which contradicted Tesla's mission. Therefore, Tesla decided to temporarily use Bitcoin to pay for new car purchases. After this push was launched, the price of Bitcoin suddenly plummeted by more than 10%, and the prices of other virtual currencies also experienced a 10% to 100% decline.
However, Musk insisted at the time: "Tesla will not sell any Bitcoin. Once mining is transitioned to more sustainable energy, we intend to use it for trading. We are also looking for other Cryptocurrency that consume less than 1% of Bitcoin energy."
CEO58(Saturday Night Live) 0.73760.720.412424.85%Musk's Star Effect
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