There was no cliff-like drop, and the price of Bitcoin gradually entered a stable stage

Recently, the domestic market price of Bitcoin has exceeded the 8,000 yuan mark, and the transaction price on some platforms was close to 8,100 yuan.

At the end of 2016, the price of Bitcoin had a crazy rise, and the domestic transaction price of Bitcoin was close to the 9,000 yuan mark. Against this backdrop, the central bank interviewed the heads of Huobi.com, Okcoin, and Bitcoin China on January 6; then, the central bank increased pressure again and began a 13-day surprise inspection of Huobi, Okcoin, and Bitcoin China on January 11. The central bank's combined punch forced the three major Bitcoin trading platform giants to stop financing and currency lending and impose a 0.2% two-way transaction book renewal fee. The price of Bitcoin also fell back, and the price was close to 5,000 yuan at one point, but the price of Bitcoin rose during the Spring Festival.

The total trading volume of the three largest Bitcoin trading platforms in China has long accounted for more than 90% of the global trading volume. This also forced the central bank to interview nine Bitcoin companies after the Spring Festival. The effect of this policy pressure is quite obvious. Some small domestic platforms began to remove Bitcoin and close Bitcoin trading business. The mainstream Bitcoin trading platform suspended Bitcoin withdrawals and carried out rectification. The price of Bitcoin once fell to 5,400, the trading volume fell, and the leading position in the Bitcoin trading market was replaced by Japan.

Fortunately, the price of Bitcoin in China did not drop drastically as it did at the end of 2013. The cryptocurrency community has become more rational. The mainstream cryptocurrency community believes that Bitcoin is still worth looking forward to in the medium and long term, and there may be a round of decline in the short term. However, the price fluctuations in recent periods are somewhat different from expectations. The Bitcoin price correction time is very short. Under the leadership of foreign trading platforms, the price of Bitcoin in the domestic market has also begun to rise.

Although the central bank's combination of measures against Bitcoin since the beginning of the year has had a certain negative impact on the Bitcoin market, the central bank is more concerned about anti-money laundering and platform compliance. Some comments believe that the central bank is not trying to suppress Bitcoin this time, but to prevent and combat illegal activities such as money laundering, currency exchange, and pyramid schemes using Bitcoin, curb excessive speculation in Bitcoin, and protect the interests of small and medium-sized investors. Domestic Bitcoin trading platforms have only suspended withdrawals, but the central bank has not banned trading platforms, but has only warned that they will be forced to close if they do not comply with anti-money laundering regulations.

There is also a view that the closure of margin trading and currency lending business by trading platforms has offset part of the market bubble; the suspension of withdrawals has reduced the amount of bitcoins circulating in the market, and things are valuable because they are scarce; the handling fees charged by domestic platforms are a big blow to high-frequency traders, the cost of moving bricks has increased, and the cost of people buying coins has increased, resulting in a decrease in the number of people buying and selling bitcoins in the market, and people are more willing to hold bitcoins rather than sell them; part of the domestic funds have been transferred to the international market, which has boosted the international price of bitcoin.

Recently, there have been many positive news about Bitcoin abroad, which has had a certain positive impact on the domestic Bitcoin market. Trump's policies have caused global uncertainty and the market expects that the Trump administration will relax its friendly attitude towards digital currencies and recognize Bitcoin as a "new means of payment", and Bitcoin has a clear legal identity. "On this basis, the market speculates that the first Bitcoin exchange-traded fund (ETF) will be approved by the US financial regulator; Japan's attitude towards Bitcoin has become more positive, which has also driven up the domestic Bitcoin market price. It is relatively rare for foreign Bitcoin prices to be higher than domestic prices for a long time.

Recently, more and more blockchain companies have received financing, and blockchain-related applications have been continuously implemented. Bitcoin is a well-known blockchain application. However, some community members are still worried that the continuous rise in Bitcoin prices will lead to tightening of regulatory policies. However, the original intention of the central bank is to maintain normal financial order through supervision, and prevent and combat illegal activities such as money laundering, currency exchange, and pyramid schemes using Bitcoin.