Bitcoin fell sharply shortly before Friday’s U.S. open, falling below $6,800 a piece, expanding to 13 percent in 24 hours, according to Coinbase, a bitcoin trading platform. It was the second time in a day that Bitcoin had fallen below the $7,000 mark, but then regained ground.
The global market value of cryptocurrencies fell below $200 billion, or about $199.109 billion, as virtual currencies such as Bitcoin plummeted, according to Currency World. Bitcoin, which is the top-ranked cryptocurrency market, has a market capitalisation of about $131.085 billion, with a current market capitalisation of 66 percent, Ethereum is second with a market capitalization of $16.652 billion, and Ripple is third with a market capitalisation of $10.302 billion.
Yesterday, the price of bitcoin suddenly fell sharply during the New York session, quickly missing the $8,000 mark. This may signal the end of a sudden surge of days from October 25th. Let’s take a look at what caused Bitcoin to plunge.
“Part of miner shutdown Bitcoin delivery light”
Earlier this week, it was reported that some miners had to “shut down” because of the lack of price of bitcoin, which analysts believe has created a gloomy mood in the cryptocurrency market.
Mati Greenspan, founder of Quantum Economics.io, believes the cryptocurrency market has been in a dead end recently, with the positive effects of blockchain in China completely disappearing in October. Investors must be wary of the potential impact of low volumes and liquidity, and a large order from a small number of buyers or sellers can cause sharp price fluctuations.
Regulators step up regulatory efforts to crack down on virtual currency transactions
On the news side, the recent china’s measures to check the risk of currency speculation, which put downward pressure on cryptocurrencies such as Bitcoin.
On November 22nd the People’s Bank of China’s Shanghai headquarters said that in recent years, speculation related to virtual currencies (such as ICO, IFO, IEO, IMO and STO) had been rife, with prices soaring and plummeting and risks gathering rapidly. The relevant financing subjects raise funds from investors or virtual currencies such as Bitcoin and Ethereum through illegal offering and circulation tokens, which are essentially unauthorized illegal public financing, and are suspected of illegally selling tokens, illegally issuing securities and illegal fund-raising, financial fraud, MLM and other illegal crimes, seriously disturbing the economic and financial order.
In addition, on November 21, Shenzhen Internet financial risks and other special rectification work leading group office issued “on the prevention of “virtual currency” illegal activities of the risk tips, said that the virtual currency transactions and other illegal activities will be checked and collected evidence.
On November 21st, Xinhua news agency also wrote that some people were doing fraud in the name of blockchain, such as the digital currency scam, issuing worthless “air coins” and mlm scams under the banner of blockchain.