Bitcoin, the moment of shearing

Bitcoin, the moment of shearing

Earlier, at the World Economic Forum in Davos, UBS President Axel Weber warned against Bitcoin: Bitcoin is clearly a speculative investment, and I can't classify it as currency. Retail investors do not fully understand these products, so they should be protected from this market.

Coincidentally, "Bitcoin Jesus" – one of Bitcoin's first investors, Roger Ver, said in an interview with CNBC reporters in May 2018 that in addition to Bitcoin, cryptocurrency users around the world More than the developers use bitcoin cash.

Of course, no one is bitter about Bitcoin than the one who is speaking to Professor Lang Xianping – he once claimed to send him 100 bitcoins.

Bitcoin, the moment of shearing

Bitcoin, the moment of shearing

So what is Bitcoin God is? Not yet known, but from nearly $14,000 to $10,000, bitcoin (BTC) took less than 24 hours.

A surge, followed by a violent crash, also showed double-digit losses, almost all weeks of increase. The FOMO (fear of missing) environment evolved into a FUD (fear uncertainty and suspicion) sentiment.

Facebook's Libra project faces severe regulatory resistance in the US and Europe. In addition, some partners began to worry about the feasibility of the project and hinted that they would opt out if there were any violations of the plan.

Bitcoin, the moment of shearing

Although Facebook tried to defend the project, saying it couldn't control the network, these developments meant that the excitement gave way to rational thinking and led to a reassessment of the project's results.

Although the real reason for the sudden sell-off is still unknown, the technical revision of the overbought level does play a role and squeezes a lot of weak bulls in the market.

Some experts point out that Coinbase's downtime is the initial trigger for selling, but in reality, short-term service unavailability may be due to strong market movements. Other cryptocurrency operators, including Robinhood, have encountered similar problems.

In addition, there is news that hackers have used the Singapore cryptocurrency exchange vulnerability Bitrue to steal $4.5 million in XRP and ADA coins, which has intensified the downward pressure on the market crash.

So now the question is, why is bitcoin and other digital currencies so sold off on such a large scale? Will this sell-off continue? In addition, is this a chance to buy, or is it better to stay away from digital currency forever? (Huitong Finance)