After breaking the 19000 mark, bitcoin once fell 3000 dollars. What happened to bitcoin?


After breaking the 19000 mark, bitcoin once fell 3000 dollars. What happened to bitcoin?
Wen / Deng Yiyuan hit a high of $19490 on Wednesday, bitcoin fell sharply in recent two days, and other cryptocurrencies such as Ethereum also fell, some of which fell more than 20%. Bitcoin broke the 17000 mark in the early hours of Friday to a minimum of $16230, down 12% in a single day. This is the biggest drop since August and more than $3000 less than its previous high. It is currently operating near the 17000 level. Analysts said the decline was due to two reasons: speculation after the recent rally and speculation that the regulation of cryptocurrency would be tightened. Justin low, an analyst at forexlive, a financial website, pointed out that bitcoin’s sharp decline after approaching a new high was likely due to fomo sentiment bought at a high level in the past week or so. “Fomo” describes modern people’s fear of not keeping up with the latest trends. This word also means the same thing in the currency circle. For example, if you see a virtual currency rising, investors will want to keep up with the trend, and they are afraid that they will miss the irrational investment behavior caused by this wave of profits. Before that, bitcoin failed to continue to rise after reaching a high of US $19490. The data showed that the transaction volume between us $19450 and US $19550 was large, and there were a large number of sales orders. Vijay boyapati, a bitcoin researcher, points out that the $19500-19550 range is the last strong resistance range before bitcoin hit a record high, and bears may take action. If bitcoin fails to test the 19500 region again in the short term, the price may fall back.
Justin cautioned that if the closing price falls below the January 2018 high of $17178, it is expected to hit buyers’ momentum.
In addition to the correction caused by speculation, Ryan rabaglia, head of global trading at OSL, a digital asset trading platform, analyzed that concerns about the possible tightening of cryptocurrency rules in the United States might explain Thursday’s slump.
Recently, market news said that U.S. Treasury Secretary nuqin tried to ask the Treasury to track the owner of the self trust cryptocurrency wallet, and was preparing to intervene in the private password holding behavior of cryptocurrency holders, and put forward a large number of data collection requirements. Brian Armstrong, chief executive of coinbase, a digital currency trading platform, attacked the move on social media on Wednesday night.
If true, it would be a blow to the cryptocurrency industry in the United States, which the federal government has never dealt so hard. It will force companies to know each of their users’ counterparties, encrypt transactions, keep records, track actions, and even verify identities before transactions occur.
The Treasury did not comment. Although the relevant “regulatory rumors” have not been officially reported and recognized, the “regulatory sword” hanging on the virtual currency trading for a long time is still enough to make some investors choose to make a profit.
Prior to that, Dario, founder of bridge water fund, had raised doubts about the rise of the special currency. He pointed out that if bitcoin is successful, the government will outlaw the cryptocurrency.