Digital currency crashes again, virus reignites concerns about Bitcoin?

Having just escaped the danger of Bitcoin hard fork, digital currencies are falling collectively again. This time it may be caused by the Russian Bitcoin virus.

According to the data from digital currency platform Coindesk, Bitcoin fell to a low of $2,545.66 on Tuesday, down more than 9% from the opening. The decline has narrowed, and as of press time, it has fallen by more than 6% and is above $2,600.

Ethereum fell to $208.67 on Tuesday, a drop of about 7%, testing the $200 support level.

The top ten cryptocurrencies by market value fell an average of about 10% during trading on Tuesday.

In fact, there was no major news on Tuesday that had a substantial impact on the fundamentals. Just on Monday, US regulators approved Bitcoin options exchange trading for the first time. However, industry media CoinTelegraph mentioned that there was news that a Bitcoin virus infected devices in Russia.

According to CoinTelegraph, in an interview with Russian media RNS and RBC, Russia's chief Internet presidential adviser Herman Klimenko said that a Bitcoin mining virus has infected 30% of the country's computers. Although the infection rate varies depending on the region and the device, it has affected at least 20% of the machines.

Klimenko said areas with lower bandwidth were less affected and iPhones and Macs were relatively less vulnerable to the virus.

The risk of Bitcoin hard fork has subsided recently, and Goldman Sachs has issued bullish forecasts in succession.

Wall Street News previously mentioned that last Thursday, Goldman Sachs' bullish research report believed that the threat of Bitcoin's "Civil War" seemed to have ended, and Bitcoin rose by more than 17% that day. Last Sunday, Goldman Sachs' report predicted that after a few more fluctuations and possibly as low as $1,786, Bitcoin may usher in a wave of sharp increases, with the highest possible increase to $3,691, more than 30% higher than the opening price on Monday this week.

But some analysts have warned that Bitcoin will fall sharply in the near future.

Elliott Prechter, market analyst and son of legendary Wave Theory master Robert Prechter, recently predicted that the digital currency craze will end in a crash.

One reason why Pechter makes such a prediction is that, from the perspective of wave theory, since 2010, Bitcoin has reached the fifth wave of the upward trend, which is the last wave of growth (bottom chart). This does not mean that Bitcoin will fall to $0.06 seven years ago, but other Bitcoin copies may not escape the catastrophe.

Pechter believes that investors’ excitement about Bitcoin exceeds the tulip speculation mania in the Netherlands in the early 17th century. “A mania can be both a mania and a revolution.”