The worst is coming! 40,000 people were liquidated, 9.8 billion was lost on the entire network, and the US Treasury Secretary hit Bitcoin hard again

According to Xinhua Finance, on January 25th local time, Janet Yellen became the 78th U.S. Secretary of the Treasury and the first female Secretary of the Treasury in U.S. history.

It is worth noting that according to a report by Reference News earlier, citing the US Als Technology website, if Janet Yellen, Biden's choice for US Treasury Secretary, is successfully inaugurated, cryptocurrencies may be subject to regulatory review again in the next four years. It is reported that Janet Yellen had previously said: "Cryptocurrencies are particularly worrying. I think many cryptocurrencies are mainly used for illegal financing, at least at the transaction level." The report also pointed out that these new regulations did not take effect before Trump left office, so the Biden team needs to decide how to treat these new regulations. The Biden administration may approve, revise or completely repeal them.

As traders worry that the United States will tighten regulation, the price of Bitcoin continues to plummet. According to the Daily Economic News, citing data from the Bitcoin News Resource Network, as of January 24, the value of Bitcoin was about $32,000, which has dropped by 20% from the high of $40,000 in early January. On January 22, Bitcoin once fell below the $30,000 mark, falling to a low of $28,845, a drop of 17.83% from the intraday high. On January 20, Bitcoin still maintained a high of around $37,000. According to data from the Bitcoin Home Network, a total of 40,000 people had their positions liquidated in the past 24 hours, and 1.69 billion yuan of funds were wiped out.

In fact, before Yellen, the US government was generally skeptical of cryptocurrencies. Former US President Trump also said on social media in July 2019 that he was not a fan of Bitcoin and other digital currencies. Digital currencies are not currencies. Their value is based on air and fluctuates violently. Unregulated digital assets will encourage illegal activities such as drug trafficking.

In this regard, some experts said: "Bitcoin and other digital assets have been highly financialized, so the price is unlikely to escape the cyclical law: if there is a rise, there must be a fall, and if there is a fall, there must be a rise. Therefore, market fluctuations and adjustments are likely to continue, but the overall fundamentals and trends have not been substantially reversed."