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On April 13th, the cryptocurrency market saw another "bloodbath". Bitcoin's price plummeted by over $2,000 at one point, dropping from $67,100 to below $65,000.
According to CoinGlass data, a total of 296,300 people were liquidated in the cryptocurrency market, with a total liquidation amount of $920 million.
Some investors expressed their feelings on social media, saying, "Money evaporates faster than water."
A significant event in the cryptocurrency market this month is the upcoming "halving" of Bitcoin, which is closely watched by investors as it directly affects the supply and demand of Bitcoin.
The "halving" of Bitcoin refers to the halving of rewards obtained after producing new blocks, which occurs approximately every four years. The specific timing depends on the block generation speed of the Bitcoin network, reducing the supply of Bitcoin. With the halving of block rewards, it takes longer for all bitcoins to enter circulation in the market.
Regarding the upcoming "halving", Kevin, the founder of Web3 CD and CEO of Full Speed Innovation Capital, pointed out in an interview with the Daily Economic News that "the difference between this round of Bitcoin market and previous ones is that previous cryptocurrency bull markets occurred after the 'halving', but this time it's before the halving, so this round of market may develop differently from previous ones. However, at least for now, the overall cryptocurrency market is still in a relatively disorderly state, and no one can better predict the future trend."
The cryptocurrency market is magical, with prices fluctuating from highs to lows in an instant. However, over the years, many investors have still been chasing Bitcoin for various reasons.
According to The Paper, "First, Bitcoin has shown high potential returns. Over the past few years, the price of Bitcoin has outperformed traditional assets. Second, Bitcoin has a low correlation with traditional financial markets, and including it in the investment portfolio can diversify risks. In addition, some investors believe that it has properties that can hedge against inflation and can serve as a tool for value preservation." Angel investor Guo Tao analyzed to reporters.
However, there are still many risks in investing in Bitcoin. Wang Peng, a researcher at the Beijing Academy of Social Sciences, told reporters that the price of Bitcoin may fluctuate significantly in a short period, causing investors to suffer huge losses. Although Bitcoin's technology is considered secure, there are still potential risks of network attacks and theft. In addition, different countries have different regulatory policies on Bitcoin, and the legal framework is still evolving, which affects its legality and market acceptance. The price of Bitcoin may be influenced by major participants, with the risk of market manipulation.
According to Beijing Business Daily, does Bitcoin still have further upside potential? How will it develop in the future? Yu Jianing, co-chairman of the Blockchain Special Committee of the China Communications Industry Association, pointed out that digital assets led by Bitcoin can be considered as "future assets" whose value can effectively transcend economic cycles. Digital assets can be understood as a mirror of the development of the digital economy, just as the stock market reflects the relationship with the real economy. The revaluation of digital assets reflects the development and prosperity of the digital economy. However, as a highly volatile asset, the price of Bitcoin may experience drastic fluctuations in the short term, depending largely on factors such as market sentiment, macroeconomic environment, and regulatory policies.
Yu Jianing also reminded that the volatility of Bitcoin's price is part of its intrinsic nature, and any investment decision should be based on sufficient market research and personal risk tolerance. Understanding the status of Bitcoin in digital assets and the deep-seated logic of the relationship between digital assets and the digital economy is of great significance for investment decisions and market analysis. |
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Post time 20-4-2024 16:47:10
