Why is Bitcoin Suppressed (Why Bitcoin is a “Da Bing”)

Why is Bitcoin suppressed? According to CCN, a report from Fortune magazine in the United States shows that due to the recent decline in Bitcoin prices, many speculators have shifted some of their funds to the cryptocurrency market. This has led many investors to question whether the market for digital assets will continue to rise. However, these people are not unaware of why Bitcoin is suppressed. They believe that it poses a significant threat to the financial system, political economy, and social stability. They even say that people’s attitudes towards cryptocurrencies are very similar to those towards Bitcoin. What’s more, with the development of blockchain technology, more and more institutions and individuals are investing in digital currencies to achieve higher prices, and this trend is also called the Bitcoin bubble.

So, what are the impacts before the burst of the Bitcoin bubble? There are several main factors:

1. The drastic drop in Bitcoin prices due to its constantly rising value.

2. The significant increase in Bitcoin transaction costs.

3. Exchange closures leading to users being unable to withdraw funds.

4. Network attacks causing network shutdowns.

5. ICO scams causing network interruptions.

6. Fraudulent extortion incidents under national credit endorsements.

7. Hacker intrusion into websites for coin theft.

8. Chinese police seizing over 110,000 BTC and other virtual commodities from suspects.

9. The South Korean government issuing a ban on banks providing related services.

10. Bitcoin becoming a source of illegal activities.

Why Bitcoin is a “Da Bing”

Why is Bitcoin called a “Da Bing”?

How did “Da Bing” form in a bull market? Let’s take a look at the following chart:

From the chart, it can be seen that Bitcoin has been in an upward channel since November 2015. From March 2016 to the end of 2017, this wave of upward trend lasted for about 5 months. By the beginning of 2020, after a strong rebound, Bitcoin started to rise and broke through the resistance level of the previous high. Subsequently, Bitcoin experienced a continuous decline and eventually reached a low point near $18,800. After a halt at the support line above $17,500, the price declined again and is now fluctuating below the previous support line. However, due to the recent stable market sentiment and the continuous release of positive news, Bitcoin has experienced a small-scale rally. But with the large rise of Bitcoin, there has also been a significant downward fluctuation.

Will the market suddenly surge like last year, or will similar events occur later? In fact, it can be seen intuitively that this is caused by two main reasons: 1. The price trend of BTC is basically the same as that of ETH; 2. Mainstream currencies follow the development trend of the market with great potential for growth; 3. Global financial institutions are entering the market to support digital assets.

Of course, these factors are not simply the result of fund inflows, but the technical principles behind Bitcoin determine its future value, rather than the impact brought about by changes in the technical aspect. Therefore, regardless of whether you believe that the bottom has already rebounded, I still have a positive outlook on the long-term growth of Bitcoin.