Are Cryptocurrencies Constantly Crashing? Bitcoin continued to fall, dipping below $34,000, double shot stress

The cryptocurrency faces another cold winter and is on the market. Bitcoin extended its decline after falling more than 20% over the two trading days of January 22 and 23. On January 24, Bitcoin continued its decline and fell further to the $34,000 level, while other upsides like Ethereum and Dogecoin also fell.

Earnings investors are still suffering from further declines. Some novice users have lost nearly 400,000 yuan in six months and want to make money through credit card cashing, online loans, etc. Analysts say the volatile cryptocurrency exchange and “financial market” has given many investors pause, but they cannot ignore their own smug and dangerous inaccuracies.

Over 100,000 yuan in cash was stolen overnight.

"There have always been analysts who say that Bitcoin, Ethereum and other major currencies have been promoted at home and created their own currencies after entering the currency region. Not necessary when they fall?" 1 March 24, Li, Monetary Yu (pseudonym), a small world white user, reported the confusion to a Beijing Business Daily reporter.

From $3,000 to nearly $70,000, Bitcoin has struggled over the past two years. After several ups and downs throughout 2021, Bitcoin has reached a “record” increase of 66% for the whole year. Ethereum, which is still vicious, will grow by more than 400% by 2021.

The popularity of the two major awards has attracted many new users, and Li Yu is one of them. Li Yu revealed that he started his own speculative coin market after the crash on May 19, 2021. At first, he made small investments for the purpose of experimenting, but after receiving small profits, it increases gradually. Finally, the decline has also increased.

Li Yu told a Beijing Business Daily reporter that in the past six months, from demand to one step, one step, one step, the 400,000 yuan he invested in has disappeared. "You can console yourself very early. When the market changes, there are always opportunities. The return on investment is far from seeing a bigger and bigger loss. The craziest night, I saw 100,000 yuan in money." My brain was blank and I couldn't sleep one night," he said.

"Even 400,000 yuan is the money I have saved since I started working. I don't dare my relatives and friends. Sometimes I think it's a dream. Another abyss," he said.

Now the Bitcoin cycle has fallen, causing Li Yu to regenerate, which also makes him very depressed. From Li Yu's perspective, the positive words of the global financial past are like "flowers for the cake" in the market, it is a game that impacts interests. Money circle fans basically need a piece of the cookie to indicate its value.

Another well-known global currency, Liu Qi (pseudonym), also confirmed the message to a Beijing Business Daily reporter. In recent years, full-time financial analyst Liu Qi has achieved little in the currency market, but most feel frustrated. Liu Qi also bluntly stated that the currency cycle is like the face of Vanity Fair, saying the value of cryptocurrencies like Bitcoin is just one example of "speculation" to get money faster.

“Knowing a night of freedom of wealth is really in a few hands and more is a “nightly liquidation”. In addition to the huge investment risk, the average user can easily get lost when there is a big change. In the recent election, it's hard to overcome inertia when you get money," Liu Qi said.

Zhou Maohua, macro analyst at China Everbright Bank's financial markets, noted that wildlife trading and cryptocurrency "financial stories" have caused many investors to estimate. However, from a performance perspective, the inconsistencies of the cryptocurrencies represented by Bitcoin are difficult to manage and indistinguishable from existing capital and measurement procedures. It is not difficult for participants to participate in "overnight loot" and is not suitable for the average trader.

Cut it almost in half and open both types of long and short shoots.

Indeed, as of 2022, the diversity of cryptocurrencies like Bitcoin is favored by many parties. After hitting an all-time high of $69,000 in November 2021, Bitcoin failed to cross $70,000 in the past as people in the financial world had hoped, but instead fell for several consecutive months.

Bitcoin started at $48,000 in early January and continued up to $40,000 before starting to move up and down around $42,000. Between January 22 and 23, Bitcoin was down more than 20% in the two-day trading session, once falling to $34,000.

In the shadow of a plummeting market, Bitcoin closed its worst year since 2012, and many voices such as “Bitcoin fall” and “Market bear coming” were heard again. More importantly, after a short flat period, Bitcoin has entered the status quo more than the “long-term two-shot” mode, with daytime ranges at higher levels.

In the 15 minutes since 07:00 on January 24, Bitcoin gained 2.42% in the short term, then touched $36,545, then fell before falling back below $35,000. In 15 minutes from 4:45 p.m. to 5:00 p.m., Bitcoin rose again with an amplitude of 2.21%.

According to data from global money-value site CoinGecko, as of 6:30 p.m. on January 24, the price of Bitcoin was $33,704, down 7.5% in 24 hours and down 23.1% in 7 days. The differences for other cryptocurrencies are also stark, with most of the top 10 cryptocurrencies in the market by market cap having fallen by 20-45% in the last seven days.

Liu Qi told the Beijing Business Daily reporter: “The whole market is full of stress, and the price difference is not clear. It cannot be determined by past experience,” Liu Qi told the Beijing Business Daily reporter about the short term. It's often easier to entice sellers into the market if you "punish" them or "remember" them "a lot".

There are many downsides after the decline of cryptocurrencies. The Fed process accelerated and asset risk decreased due to tight monetary policy. At the same time, Russia, the UK, Canada and other countries also announced regulations for cryptocurrencies, and many bitcoin options expired.

According to Wang Peng, an expert from Renmin University in China, cryptocurrencies like Bitcoin generally do not have equal returns, and price differences are often affected by market news. Therefore, once deviated from market expectations, it undermines investor confidence and further creates an imbalance between supply and demand from buyers and sellers.

Refuse to play and avoid danger.

Apart from the risks posed by the stress of price movements, the cryptocurrency crisis in the continued emergence of various currencies and aircoins, appeals to profitable investors, much in the name of cryptocurrencies.

By 2021, cryptocurrencies and other markets in our country will continue to be drawn into fights and persecutions, which means "financial crime", and cryptocurrency exchanges have also declared them out of Mainland China. However, from a pragmatic point of view, there are still users of the currency cycle who try to engage in illegal trading in various ways.

According to Li Yu, after the emergence of speculative thinking, interest in forecast results has also declined, and he is reluctant to pursue new business opportunities. Regarding the follow-up plan, Li Yu declined to say more, simply saying, "The immersive cryptocurrency carnival must be viewed rationally, and the bubble will burst one day."

Li Yu also reminded us that many call circle users we contacted in the past also went further. Avoiding wasting time, refusing to participate in activities and earning real money is the most important thing. I hope it's not too late.

"Regulators have again warned the industry of risk by highlighting the risks of the cryptocurrency market, proving once again their role in preventing speculation in cryptocurrency. Entrepreneurs should stay away from this work.

Wang Peng also noted that the cryptocurrency hype differs from investments offered by licensed companies. It is difficult for ordinary investors to manage, so do not follow the opinions of others and engage in so-called "high yield" activities that lead to blindness.