Why has Bitcoin fallen so much (why has Bitcoin plummeted)

Why has Bitcoin declined so much? Why has Bitcoin declined so much? What is the trend of Bitcoin? Why did it fall to a historic low? Why is Bitcoin in such a situation? Bitcoin prices have undergone significant adjustments over the past year, breaking the $60000 mark for the first time since March. Just a few days ago, the price of Bitcoin began to plummet from over $20000 (it has since rebounded to over $40000) Although the Bitcoin market is in a bearish and bullish state, this does not prevent us from conducting an overall analysis of the price of Bitcoin: the last sharp drop in Bitcoin occurred on January 15th of this year; At that time, the stock market crashed due to the Federal Reserve’s interest rate hike, and Bitcoin also experienced a short-term rebound. Later, there was a slight increase in early July, and it has been fluctuating in a high and narrow range since then. But by the end of September, Bitcoin prices had once again fallen and touched around $10500; In mid December, it skyrocketed above $13000 and only now has it rebounded; Meanwhile, according to Bitstamp data, the open positions on Bitcoin spot exchanges have reached their highest level in nearly six months. (Source CoinMarketCap); Therefore, people are beginning to doubt whether Bitcoin will soon return to the price range of 10000 or higher. Why did Bitcoin prices suddenly drop so much? The continuous decline in the price of Bitcoin is driven by various factors, including Gary Gensler, Chairman of the Securities Regulatory Commission of the United States, Biden, President of the United States, signing the executive order, Anatoly Durov, Deputy Minister of Finance of Russia, etc. These events have forced central banks around the world to seek ways to control the economy to avoid inflation rates exceeding targets At the same time, the Bitcoin network is gradually maturing, and transaction fee income can be used as a means of offsetting the volatility of other digital currencies, and can reduce transaction costs by providing faster settlement times. This is the most common reason for Bitcoin, as it is provided by miners

In addition to halving, something very interesting happened to Bitcoin: the launch of Ethereum 2.0. It is said that the first block was generated between August 14th and 13th at a height of 114000. However, this block was eventually excavated and did not receive a complete reward. In the next two weeks, if the validators in the block hold enough ETH, it may increase more rewards, thereby promoting the development of Bitcoin On the other hand, although Bitcoin has maintained a strong upward trend over the past year, its price has not actually wavered in any way. On the contrary, as Bitcoin continues to grow, the strengthening of this momentum may drive Bitcoin to continue climbing. In addition, according to CCN analysis, it is not uncommon for Bitcoin prices to continue to decline in the past few days. From May 12 to now, it has fallen below 40000 dollars for three consecutive days. This decline is mainly driven by institutional investors’ purchase of Cryptocurrency And just yesterday evening, Bitcoin soared to around 48000 and then quickly fell back. According to Coindesk, according to data provider Glassnode, Bitcoin miners have sold over 2.5 million BTCs (6% of the total supply) since mid February. Nevertheless, the number is still below its historical high of only around $21 million earlier this year; At the same time, the number of active wallets on the Bitcoin network is also sharply decreasing. Therefore, as the market increases the inflow of exchange funds and the demand for Bitcoin weakens, the number of new entities flowing out may further decrease However, due to the lack of new participants in the market to support this rebound trend, this event has attracted many people’s attention, as more and more people believe that this is a positive factor and hope that Bitcoin can break through the $20000 mark.