The reasons are as follows:

1. The U.S. dollar and U.S. bond yields are rising. Rabobank said in a research report that the strength of the U.S. dollar and the rise in U.S. bond yields over the past week triggered a decline in the prices of Bitcoin and gold. 2. Take profits. Guggenheim Chief Investment Officer Scott Minerd, who predicted in late December that Bitcoin would eventually reach $400,000, said on social media that it was time to take some profits and that Bitcoin’s parabolic upward trend was unsustainable in the short term. 3. Algorithmic trading. Larger U.S. investors such as hedge funds are increasingly active in the market, particularly their use of trading algorithms.

Bitcoin does not rely on the issuance of a specific monetary institution. It is generated through a large number of calculations based on a specific algorithm. The Bitcoin economy uses a distributed database composed of many nodes in the entire P2P network to confirm and record all transaction behaviors. , and uses cryptographic design to ensure the security of all aspects of currency circulation.