The development of digital currency is eye-catching, not only in the recent Facebook Libra project, but also in the Bitcoin roller coaster market. In the morning of July 15, bitcoin prices fell below $10,000, and the biggest drop in the 24-hour period was more than 10%. As of press time, according to CoinMarketCap data, Bitcoin fluctuated around $10,300.
At the same time, other digital currencies have also experienced sharp declines, and the number is large. The top 35 cryptocurrencies on the CoinMarketCap platform showed varying degrees of decline on July 15, with the highest drop of nearly 20%. According to CoinMarketCap data, the Ethercoin (ETH), which ranks immediately behind Bitcoin, is currently quoted at $226.93, a 24-hour drop of 15.09%.
- What will happen to Bitcoin in the next financial crisis?
- LedgerX launches $100,000 bitcoin call option
- Libra coins accepted a US Congress hearing this week, bitcoin plunged 12% and fell below $10,000
- BTC accelerates, and whether the altcoin should be cleared
- Why is Bitcoin a belief?
- Spam attack? Bitcoin average block size suddenly soared to more than 3MB
In June, Bitcoin showed a big upswing, and even broke through $13,000 on June 27, with an intraday increase of more than 20%. Analysts believe that June has a direct benefit to stimulate digital currency. On June 18, Facebook officially announced the Libra project white paper on cryptocurrency, which is considered to be the most direct benefit to stimulate the continued rise in bitcoin prices.
Hong Weining, a well-known blockchain expert, told the Beijing Business Daily that although the reasons for the decline in bitcoin and other digital currencies on July 15 were unclear, the repeated shocks in bitcoin prices since the end of June were affected by the following reasons: “First, PlusToken After the road was run, the project side lifted the coins; secondly, Libra’s illusion shattered, leading to a decline in market enthusiasm.”
The reversal of market sentiment is the main reason for the recent decline in bitcoin prices. Senior financial analyst Xiao Lei told reporters that since the Fed began to release easing and interest rate cuts, investors have also begun to look for other assets, including stocks, bonds, gold, etc. As the largest increase in the first half of the year, Bitcoin has a callback demand.
Libra, which Hong Ning believes is gradually ruining, is obviously not good in the near future. Except for Trump’s post on Twitter that he does not like digital currency including Bitcoin, the US official also Worried, Federal Reserve Chairman Powell last Thursday raised concerns about the potential threat posed by Bitcoin and other cryptocurrencies to the financial system.
The United States hopes to include Libra in regulation. Xiao Lei believes that the impact of regulation on the market will be negative in the short term and may bring resistance to similar project development in the future. Xue Hongyan, assistant to the president of Suning Financial Research Institute, believes that Libra's development mainly faces three major obstacles. First, it cannot be used in countries that ban virtual currency. Libra is a virtual currency, subject to the virtual currency regulatory policies of various countries, and it is positioned. In the payment transaction, the exclusive privilege of national currency is robbed, and legal resistance will be encountered in most countries. The other two areas of resistance come from the traditional financial system and financial risk prevention pressure, Xue Hongyan said, based on concerns about the uncontrollable potential risks, Libra's risk control pressure and consequent regulatory resistance will only become more and more serious. .
Although he is not optimistic about the development of the Libra project, Hong Weining believes that Libra also has a certain positive meaning. "Libra is more of a social phenomenon. Because Libra is produced by Facebook, it has aroused people's great concern. This social phenomenon The advantage is that the cryptocurrency is more widely known and the government pays more attention to it. In the long run, it is conducive to the popularization of cryptocurrency."
Xiao Lei also believes that in the long run, the US regulatory requirements are finding a way for the market to comply, and digital currency can be said to have a sound development basis.
For the current price decline of Bitcoin, Hong Yining said that the fundamentals of Bitcoin have not changed, and they are still in the early stage of the bull market. Once the short-term shock occurs, once the news has a major positive, it will return to the upward trend. But for other digital currencies, Hong Weining believes that the early bull market will only be a bull market for bitcoin, and the bull market for other mainstream currencies will lag behind the arrival of bitcoin. Mainstream currencies refer to coins with a large market value and high social recognition. "The vast majority of the altcoin will die, but there will be new altcoins, and the isolation between the mainstream and the altcoin is not so insurmountable," said Hong Yining.
For investors who want to invest in digital currency, Hong Yining suggested that “investing in value investment rather than speculation in speculation should fully realize the value of the investment project. The value of bitcoin is digital gold, but currently There are a large number of speculators that will cause currency fluctuations in the short term, so it is not recommended to add leverage. Moreover, blockchain technology is not yet fully mature, and all projects including Bitcoin have the possibility of zeroing, so there must be certain Risk tolerance."