Bitcoin price cut in half, institutions condemned again, the cryptocurrency world is in turmoil amid constant negative news

Original title: Bitcoin price cut in half, institutions condemned again... The currency circle is in turmoil due to constant negative news Source: Beijing Business Daily

Beijing Business Daily (Reporter Yue Pinyu Liu Sihong) From Bitcoin breaking through the historical high to the collapse, from the institutions entering the market to retreating, from the mining industry being in short supply to being surrounded from all sides, in just 3 months, the cryptocurrency industry has once again experienced a great ups and downs in the industry. Today, under the high-pressure supervision of virtual currencies, Bitcoin and other currencies have plummeted again, and many companies involved in the currency have also been warned by regulators. In the view of analysts, Bitcoin has entered the bubble stage, and the strengthening of global supervision of virtual currencies is a foregone conclusion. Consumers should be wary of price fluctuations, pay attention to financial risks, and do not blindly participate.

Bitcoin has fallen again. On July 21, a Beijing Business Daily reporter noticed that the price of Bitcoin, the virtual currency with the largest market value, fell below $30,000 on July 20. As of 11 a.m. on July 21, it was still quoted at $29,800. This is the lowest price in the past three months since Bitcoin hit a record high on April 14 this year. Compared with $63,000 in April, Bitcoin has now fallen by 53%, and the price has been halved.

However, as of 15:00 on July 21, the time of publication, the price of Bitcoin has rebounded slightly again, with the latest price at US$30,700.

"The price is too painful!" "Once again it rings the alarm bell, we must respect the market"... In the past two days, many cryptocurrency holders told Beijing Business Daily reporters that the virtual currencies they currently hold are shrinking day by day. Among them, some people have already planned to "cut losses", but many people are still waiting and watching.

Regarding the recent Bitcoin plunge, Pan Helin, executive dean and professor of the Digital Economy Research Institute of Zhongnan University of Economics and Law, told the Beijing Business Daily that, on the one hand, the nature of money is storage and circulation, but Bitcoin is more of a highly volatile asset that does not have the property of stable currency value. At present, Bitcoin has entered the bubble stage; on the other hand, countries are currently working hard to decouple the financial system from Bitcoin. For example, my country has strengthened the supervision of virtual currencies such as Bitcoin, and has imposed comprehensive restrictions on everything from mining to trading, which will also lead to a drop in the price of virtual currencies such as Bitcoin.

"Because the value of Bitcoin itself is based on a certain belief, once the belief collapses, the price will be difficult to maintain." In Pan Helin's view, in the future, the prices of virtual currencies such as Bitcoin will fall further.

The sharp rise and fall of the price of virtual currencies such as Bitcoin has become the norm. As for the reasons for this decline, Jiang Zhaosheng, research director of Zero One Blockchain and researcher of Digital Asset Research Institute, said that from the external environment, it is mainly due to the further tightening of global supervision. Mainland China, Hong Kong, the United States and other places are increasing the supervision of the Bitcoin and virtual currency industry; and from the perspective of virtual currency itself, the continuous decline from $60,000 to $30,000, coupled with the lack of sufficient internal innovation stimulus and incremental capital entry, the market sentiment is gradually becoming pessimistic and numb.

In fact, in addition to the sharp drop in Bitcoin, many cryptocurrency institutions have also had a hard time recently. Beijing Business Daily reporters noticed that after Binance Exchange was warned by the Hong Kong Securities and Futures Commission, on July 19, BitMining was also publicly condemned by the Hong Kong Securities and Futures Commission for violating the Takeover Code.

The Hong Kong Securities and Futures Commission stated that on January 28, 2021, after Lotto Interactive Entertainment Co., Ltd. announced the proposed share subscription of Bit Mining, the related transactions of Bit Mining violated the Takeover Code. In this regard, the Hong Kong Securities and Futures Commission reminds practitioners and parties who intend to use the Hong Kong securities market that they should act in accordance with the Code on Takeovers and Mergers and Share Buybacks, including seeking professional advice as needed, and professional advisors should ensure that their clients understand and comply with the Code. If there are any questions about the application of the Code, the opinions of administrative staff should be sought as soon as possible.

Public information shows that Bit Mining is a virtual currency mining company, and its business includes virtual currency mining, mining pools, mining farms, and the research and development and production of mining machines. In response to the condemnation issued by the Hong Kong Securities and Futures Commission, a Beijing Business Daily reporter tried to interview Bit Mining, but the call was not connected after multiple calls.

Judging from the information disclosed recently, the Hong Kong Securities and Futures Commission has frequently warned and criticized companies involved in currency. In Jiang Zhaosheng's view, the Hong Kong Securities and Futures Commission frequently named companies in the currency circle. On the one hand, it is basically consistent with the regulatory guidelines of mainland China, and on the other hand, it is also exploring the regulatory experience of virtual currency-related industries. At present, virtual currency transactions and other related activities must be licensed in Hong Kong, and unlicensed institutions will be punished according to law; in addition, other currency circle companies that have not clearly defined regulatory guidelines must also follow Hong Kong's existing regulatory regulations. Using virtual currencies for illegal financing, marketing and trading are also untouchable red lines in Hong Kong, which is no different from the mainland.

Pan Helin pointed out that the SFC's move is also a signal of tightening regulation of virtual currencies. He further said, "In fact, European and American countries have also recently strengthened their regulation of virtual currencies. Although Europe and the United States have not completely banned it, they are also carrying out strict supervision on Bitcoin price fraud, such as price manipulation. Now that the global regulation of virtual currencies has been strengthened, the chaotic trading system of virtual currencies will be sorted out."

"The craze for virtual currency will gradually fade, and sovereign digital currency will become the global mainstream in the future. It will strengthen the trust between the two parties to the transaction through mutual trust in technology. This is a reshaping of transaction trust and has positive significance. It should be noted that the era of private 'coinage' of virtual currency is over. Consumers should avoid bubbles and enter with caution to prevent the risk of price fluctuations from affecting themselves." Pan Helin said.