Bitcoin price jumps 1658 points in four days

Bitcoin/RMB daily K-line chart Source: Huobi.com

Comprehensive report from International Online Internet Finance Channel (Xu Yang): According to the quotes published by Huobi.com, the price of Bitcoin rose first and then fell this week (June 16-June 23), from 4603.49 yuan to 3665.24 yuan, a drop of 20.38%. The price of Bitcoin continued the upward trend of last week from June 16 to 19, rising all the way to 5179.99 yuan, the highest price since February 2014. But then the price of Bitcoin ushered in a "dive". In just four days, the price of Bitcoin plummeted from a high of 5138 yuan to a low of 3480 yuan, a jump of 1658 points.

As for the reasons for this round of plunge, Huobi co-founder Du Jun said that the price of Bitcoin has been rising for a month and has entered an overall adjustment period. The positive news of Bitcoin's halving in July was digested in advance by the market. The market sentiment was high some time ago, and the price of Bitcoin rose rapidly. After exceeding 5,000 points, the market could not continue to support it. In addition, bad news also affected the trend of Bitcoin. Du Jun said that Bitfinex, a world-renowned overseas Bitcoin trading website, stopped trading twice a day due to network problems, and the crowdfunding project DAO based on another decentralized digital currency Ethereum technology was found to have a vulnerability by hackers, resulting in a loss of 50 million US dollars. At the same time, the price of Bitcoin began to fall. In addition, the US regulatory authorities have also recently revealed the risks of Bitcoin.

According to data from Huobi.com, affected by the plunge, Bitcoin's trading volume increased this week, and investors who hoarded coins in the early stage sold them in large quantities during the four days of the plunge.

Today, the price of Bitcoin has rebounded. As of 12:00 noon today, the price of Bitcoin has rebounded to around 4,300 points. There is insufficient upward momentum in the next week and the trend is unclear.

Industry

●According to Xinhua News Agency, unidentified hackers broke into the experimental fund of the "Decentralized Autonomous Organization" on the 17th, and Ethereum worth more than 50 million US dollars "disappeared". This experimental fund is mainly to show the world the security performance of virtual currency and dispel any doubts people have about Ethereum. Affected by this news, the price of Ethereum fell sharply on the same day. Some industry insiders exclaimed that Ethereum, which is regarded as a strong rival of Bitcoin, "has a bad future."

●“Money should work the same way the Internet does—instant, global, free, open and fun.” This is the philosophy and vision of Circle, an American financial innovation company that was born and grew up with blockchain technology. On the 23rd, the company’s co-founder Jeremy O’Rourke announced in Beijing that it had completed a $60 million Series D financing round led by IDG China to further expand its business, especially to enter the huge Chinese market.

●A report recently released by the Financial Oversight Commission of the United States, which is composed of authoritative regulatory agencies, pointed out that electronic currencies including Bitcoin may pose a threat to the stability of the US financial system, so regulatory agencies will conduct more stringent scrutiny on Bitcoin and other electronic currencies. The report believes that many market participants do not have much practical experience with "distributed ledgers", and some risks cannot be widely recognized before they are fully rolled out and promoted. At the same time, as for the claim of Bitcoin supporters that electronic currencies improve transparency and efficiency, the report believes that the emergence of a large number of small Bitcoin institutions has challenged the above view.

● Standard Chartered Bank of the United Kingdom has released a research report. This report is an exploration and research of blockchain technology. The report believes that this distributed ledger technology has the potential to subvert the European Central Bank's (ECB) cross-border securities settlement project - T2S (Target2Securities). The report points out that the banking industry agrees with the advantages of distributed ledger technology, including reducing transaction risks and improving real-time settlement efficiency. These advantages are enough to subvert the T2S project, but all this is still at the hypothetical stage.