The collapse of virtual currencies such as Bitcoin is mainly due to the following reasons: First, the Fed's monetary policy is expected to tighten, and the liquidity of the US dollar is declining; The second is the arbitrage of institutional reduction; Second, supervision has increased. These factors lead to the decrease of funds flowing into the currency circle, the lack of motivation for prices to continue to rise, and the existence of a large number of profit-making discs, which leads to higher risks. Just like the stock market, the currency circle needs to be adjusted. It is necessary to clean up leveraged traders and eliminate risks. By the way, change short positions into long positions and cut a wave of leeks to collect chips. Of course, the main purpose of the institution is to cash out and reduce its own risks. Under the leadership of the main force, retail investors have panic stampede effect and sell. In the case of the skyrocketing backhand of the currency circle, there must be countless people crazy to take over.
Virtual currencies such as Bitcoin have no legal status and lack national credibility and currency stability, but they are favored by illegal traders because of their anonymity and untraceability, so they have continuous trading value. Its violent fluctuations have also made investors who expect huge profits crazy, and even shouted the slogan that the future is the bitcoin era. Many people compare digital currency's decentralized virtual currency with Bitcoin, which is actually wrong. The state is also further strengthening the control of virtual currency, and even many people find that they have earned it? Money? It can't be realized, which shows that most people in China have a clear understanding of Bitcoin.
So will virtual currencies such as Bitcoin go downhill completely? The answer may be uncertain. Just as the rise and fall of Bitcoin reached 18000 USD in just two days, I believe that few people can withstand this temptation, and determined investors will continue to bypass the policy and squeeze into the currency circle. A few years ago, the bitcoin futures market bankrupted countless people in China, which only led to the strengthening of state supervision, while investors kept moving forward wave after wave. It's just that everyone should pay attention to the fact that institutions leave in arbitrage, the bitcoin market is heavy, and a large number of retail investors enter the market. This represents the further expansion of risks, and whether to enter the market is worthy of careful consideration by investors. It should be noted that the money earned in the trading market is only lent to you. If you don't leave in time, you will pay back the principal and interest sooner or later.