Bitcoin collapsed again: 10 minutes plummeted by 3,000 US dollars, and 1.7 billion liquidated in 1 hour

It is only 3 days since the three major associations of the financial industry emphasized the prevention of the risk of hype in virtual currency transactions, and the storm once again swept the currency circle.

On May 21, the meeting of the Financial Stability and Development Committee of the State Council (hereinafter referred to as the Financial Committee) clearly proposed to crack down on Bitcoin mining and trading.

Image source: China Government Network

Afterwards, the price of Bitcoin plummeted, falling by a huge amount over $3,000, directly falling below the $37,000 mark, and the bulls' defensive front collapsed at the touch of a button.

Many industry insiders said that the Financial Commission’s voice this time means that the supervision of Bitcoin and even virtual currencies will be further upgraded.

On May 21, the Financial Stability and Development Committee of the State Council (hereinafter referred to as the Financial Committee) held its 51st meeting and pointed out that it is necessary to resolutely prevent and control financial risks. Adhere to the bottom line thinking, strengthen all-round scanning and early warning of financial risks, promote the reform of small and medium-sized financial institutions to eliminate risks, focus on reducing credit risks, strengthen the supervision of financial activities of platform companies, crack down on Bitcoin mining and trading behavior, and resolutely prevent the transmission of individual risks to the social field.

BlockFi files with SEC to launch spot bitcoin ETF: Golden Finance reports that a joint venture between crypto lender BlockFi and investment management firm Neuberger Berman has filed with the SEC to launch a bitcoin exchange-traded fund (ETF). If approved, the BlockFi NB Bitcoin ETF will provide direct exposure to Bitcoin, with the issued shares trading on the New York Stock Exchange. [2021/11/9 6:39:56]

It is worth noting that this is the first time that the Financial Commission has proposed cracking down on Bitcoin mining and trading.

The "mining" of virtual currency, in short, is the process of carrying out mathematical operations for the blockchain network through computer nodes and conducting bookkeeping competition. The people who run these computer nodes are "miners", and these computing nodes are "miners".

Some people in the mining industry pointed out that this is the first time that the State Council has explicitly cracked down on virtual currency mining, which will have a huge impact on China's virtual currency mining industry. As mining is the core basic link of Bitcoin production, stricter supervision will crack down on the trading hype of virtual currencies such as Bitcoin from the source.

Canadian Regulators Approve CI Financial’s Bitcoin ETF: According to public information, Canadian regulators approved CI Global Asset Management’s (CI GAM) CI Galaxy Bitcoin ETF (BTCX) offering on March 4. According to the announcement, the CI-Galaxy Bitcoin ETF (BTCX) will begin trading on the Toronto Stock Exchange on Tuesday, subject to the approval of the Toronto Stock Exchange. The firm also plans to fold its existing bitcoin fund into an ETF. The CI Galaxy Bitcoin Fund manages approximately $172 million worth of assets. (The Block)[2021/3/9 18:27:16]

In the view of Su Xiaorui, a senior analyst in the financial field, the Financial Commission's voice is a regulatory signal, and follow-up or start to take action. In addition, virtual currency has also been written into the "Regulations on Prevention and Handling of Illegal Fundraising". "There's a documented basis for that."

Su Xiaorui said that in the current virtual currency trading model, virtual currency exchanges established overseas bypass supervision through the C2C model, and banks and payment institutions inadvertently provide payment channels, making it difficult to identify the true source and origin of funds in personal accounts. flow direction. After the supervision further subdivided the prohibited items, the platform side was put forward higher control requirements. All kinds of violations that rely on the fiery market of virtual currency will also have nothing to hide.

Riot Blockchain to Test Immersion Cooled Bitcoin Mining Technology in Texas: Jinse Finance reports that Nasdaq-listed Bitcoin mining company Riot Blockchain (RIOT) is building mining hardware in Texas Trial new liquid cooling technology to test efficient mining solutions in difficult temperature environments. The plan will "assess the potential for higher productivity and lower cost mining opportunities in Texas." Testing is scheduled to begin in the first quarter of 2021. [2020/12/16 15:18:49]

Yu Jianing, the rotating chairman of the Block Chain Committee of China Communications Industry Association and the principal of Huobi Education, pointed out that virtual assets are a high-risk investment type, and the rise and fall of asset prices and speed are significantly different from traditional assets. The equity mechanism and technology support are significantly different from traditional investment assets. In the future, the regulatory rules for virtual assets in various countries will become more and more clear, and will become stricter. During this process, some problematic funds may sell encrypted assets in a concentrated manner regardless of cost. Investors need to be alert to the occurrence of traders stampede, concentrated selling, serial liquidation and other situations.

Quotes | The proportion of US dollars in Bitcoin transactions has risen to 16.76%: According to cryptocompare data, the current situation of Bitcoin transactions is ranked according to the transaction currency. USDT is ranked first, accounting for 59.39%; the second is the US dollar , accounting for 16.76%; the third is the Japanese yen, accounting for 10.35%; the fourth is QC, accounting for 5.06%; the fifth is the euro, accounting for 3.59%. [2019/7/11]

Affected by the policy, the OKEx market shows that the virtual currency market has collapsed across the board, and the price of Bitcoin has plummeted, falling by more than 3,000 US dollars in 10 minutes. As of press time, the price of Bitcoin has stopped falling and rebounded, and is currently fluctuating around $37,000.

The frequency of negative keyword searches for Bitcoin has increased; the launch of the EOS mainnet has become a hot topic today: According to TokenInsight data, the TI index, which reflects the overall performance of the blockchain industry, reported 1054.06 points on the 9th of the 8th, Beijing time, down 8.15 points from the same period yesterday, a drop of 0.77 %. The general platform index TIG reported 1121.87 points, down 2.05 points or 0.18% from the same period yesterday. According to monitoring, the number of BTC transfers decreased by 2.4% from the same period last week to 208,000. The growth rate of community activity remained stable at 0.1% (0.09% last month), with a slow and low-speed growth for 90 consecutive days. The search-zce frequency of negative keywords such as "bitcoin death" and "bitcoin scam" increased. BCtrend analysts believe that when beliefs are scattered, it is time to collect cheap chips. Although the current market trend is weak, the current situation that there are more short-sellers than short-sellers has emerged, and the short positions of futures have repeatedly broken through more than 60% of the total positions, but there is still no result. Market sentiment slowly recovered in June. Analyst Bi Dongxie believes that the launch of the EOS mainnet has become a hot topic today. It is expected that EOS will face many problems after it goes online in the future, which will not bring about an upward effect on the price. BTC has been trading sideways since June, and the fluctuations have become smaller and smaller. It is recommended that investors continue to reserve funds and wait until the market is completely clear before operating. [2018/6/8]

Data source: OKEx

This means that if an investor bought 5 bitcoins last month, the loss amount is close to 1 million yuan.

Funds poured out crazily, and other mainstream currencies in the virtual currency market plummeted at the same time. Among them, Ethereum once fell below $2,500, a drop of nearly $2,000 from its historical high on May 12. Dogecoin, touted by Elon Musk, plummeted more than 10%.

According to UAlCoin data, a total of more than 1.76 billion yuan of virtual currency contracts were liquidated within one hour, and more than 26,000 positions were bloodbathed.

Data source: UAlCoin

"Bitcoin crash" is also on the hot search-zce again. Recently, Google Trends data shows that the number of searches for "virtual currency" has soared to an all-time high, with queries ranging from environmental issues to whether investors should sell.

On the social network, some investors lamented: "In the past, after the stock market closed on Friday, there would be no losses for at least two days. Later, I learned to speculate in coins, and I lost money 24/7."

Some virtual currency investors also told a reporter from China Securities Journal that the overseas virtual currency market has been booming at present, and American investors, including Musk, have shown great willingness to protect the market, so even if the entrance of domestic funds is cut off, overseas transactions are very fast. It can make up for it, so it has little impact on the follow-up market of Bitcoin.

On May 18, in response to the recent rise in virtual currency trading hype, the China Internet Finance Association, the China Banking Association, and the China Payment and Clearing Association jointly issued an announcement requiring member institutions not to carry out virtual currency trading exchanges and other related financial services, and resolutely Resist illegal financial activities related to virtual currency, do not provide accounts, payment settlement, publicity and display services for virtual currency transactions, and remind the public to strengthen risk prevention awareness, do not participate in virtual currency-related transaction speculation activities, and beware of personal funds being damaged.

On the same day, the Inner Mongolia Autonomous Region Energy Consumption Dual Control Emergency Headquarters Office issued the "Announcement on Establishing a Reporting Platform for Virtual Currency "Mining" Enterprises." The announcement made it clear that the virtual currency "mining" projects will be fully cleaned up and shut down.

Source: Inner Mongolia Autonomous Region Development and Reform Commission website

William, the chief researcher of OKEx Research Institute, pointed out that my country’s bitcoin mining industry is currently mainly distributed in two regions: the southwest region dominated by hydropower, and the northwest and northern regions dominated by thermal power. Bitcoin mining machines consume huge amounts of electricity, and as the computing power of the entire network increases, the total electricity consumption of Bitcoin will only increase. If Bitcoin mining activities are completely banned in China, the Bitcoin mining industry will transfer to other regions with lower electricity prices around the world (such as Kazakhstan, Russia, Canada, etc.).

Some people in the industry reminded that there are at least three major risks in the hype of virtual currencies: First, virtual currencies such as Bitcoin are fundamentally different from financial products, without real value support, and at the same time, there is no sovereign credit and commercial credit, and prices are easily manipulated and skyrocketed Second, as far as bitcoin is concerned, there is currently no bitcoin trading venue in China, and there is no consumer protection measure for "over the wall" to buy bitcoin overseas, and investors can only bear their own losses; third, virtual currencies such as bitcoin are easy to Under the "Musk-style" hype, investors were "cut leeks" in a short period of time, thus suffering huge economic and property losses

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