Yellen's words, Bitcoin fell below $30,000, fell more than 16% in 24 hours, 110,000 people liquidated 6.7 billion

This morning, Bitcoin fell below $30,000 per coin for the first time since January 5, and fell more than 16% in 24 hours.
On the news front, on the 19th local time, Yellen, the nominee for the new U.S. Treasury Secretary, said at a hearing that cryptocurrencies have the potential to be abused for illegal financing, and the government will "need to review ways we can restrict their use and ensure that money laundering is not carried out through these channels."
It is worth noting that recently, Europe has also released expectations for strengthening cryptocurrency regulation. On January 11 this year, the Financial Conduct Authority, a UK financial regulator, warned investors that there are risks in investing in Bitcoin and other cryptocurrency assets, and those involved should be aware that they may lose all their investments. On January 13, Christine Lagarde, president of the European Central Bank (ECB), stressed the need for regulation of Bitcoin's "high degree of speculation" in a speech at a Reuters conference.
Cryptocurrency market continues to plummet
110,000 people lost 6.7 billion in positions. Strong regulatory trends caused the overall collapse of the cryptocurrency market. (Red represents a decline)

Ethereum, the second largest cryptocurrency by market value, also fell by more than 15%.

As of 7 a.m. Beijing time on the 22nd, a total of 110,000 people had their positions liquidated in the entire cryptocurrency market in the past 24 hours, with the amount of liquidation exceeding US$1 billion, or approximately RMB 6.7 billion.

JPMorgan cross-asset strategists John Normand and Federico Manicardi wrote in their latest report on Thursday that Bitcoin is "the least reliable hedge during periods of acute market stress." While they acknowledged that Bitcoin is indeed a good option for investors who are concerned about policy shocks, the team warned that Bitcoin will not perform like traditional defensive assets in the short term. They added:
“Increasing mainstream ownership of cryptocurrencies is increasing Bitcoin’s correlation with cyclical assets, potentially transforming it from a safe-haven asset to a leverage tool.”
It’s therefore best to view cryptocurrency investing as a way to hedge against the risk of losing confidence in a country’s currency or payment system — rather than as a competitor to assets like gold.
Deutsche Bank's January investor survey showed that Bitcoin is seen as the biggest bubble, followed by US technology stocks. 50% of investors gave Bitcoin a bubble rating of 10 points, the highest value, and the average score was 8.7. Bank of America's January fund manager survey showed that long Bitcoin is the most crowded trade, followed by long technology stocks and shorting the US dollar.
Scott Minerd, chief investment officer of the well-known investment company Guggenheim, has previously announced that Bitcoin will reach $400,000 and invested his funds in it. He now says that Bitcoin may first fall back to $20,000, but he still insists that Bitcoin will one day reach $400,000.
Institutional buyers seem to have not given up on Bitcoin as it has pulled back sharply. According to The Block, two documents received by the U.S. Securities and Exchange Commission show that BlackRock, a trillion-dollar asset management giant, will allocate Bitcoin futures through some of its funds. However, the documents themselves do not explicitly state that BlackRock funds are buying Bitcoin futures, nor do they indicate that BlackRock may buy futures settled in cash or actual Bitcoin.