Bitcoin Depreciates More Than 14% in a Single Day and Hits a New Low for More Than a Year

After a period of calm, Bitcoin became the focus again due to its plunge. A week ago, Bitcoin quotes slipped from US$6261 (the data on bitcoin quotes in the article are all from the trading platform Bitstamp) to US$5596.

Within a few days of narrow fluctuations, the plunge came again. From 8 o’clock on the 19th to 8 o’clock on the 20th, Beijing time, Bitcoin plunged 14.26% in 24 hours, depreciating US$793 to US$4766. During the period, the lowest price was 4694 US dollars, constantly refreshing the lowest value since October 2017.

Especially during the early hours of the 20th, Bitcoin has continuously fallen below the four round mark of $5,000, $4900, $4800, and $4700 in just a few hours.

Other mainstream digital currencies have also been affected by the decline in Bitcoin. In the past week, Ripple, Ethereum, Litecoin, etc. have all fallen.

The downturn in the digital currency industry affects more than just prices. NVIDIA, a major US GPU manufacturer, recently announced that its sales volume dropped significantly this quarter due to the decline in sales of GPUs dedicated to cryptocurrency mining and its stock depreciation.

Bitcoin plummeted, market analysis pointed the “spearhead” at the “hard fork” of Bitcoin Cash (hereinafter referred to as “BCH”). A reporter from China News Agency learned that a survey of its users on the Bitcoin wallet platform Bixin showed that a total of 82.6% of users believed that the BCH “hard fork” was the reason for this round of Bitcoin’s decline.

BCH is one of Bitcoin’s fork coins. Previously, in order to solve the problem of low transaction efficiency due to the small block size of Bitcoin, BCH was born as a fork of Bitcoin. “Hard fork” can be understood as a disagreement on the technical consensus of the original digital currency, and a new chain is split from the original chain, resulting in a new currency, similar to the formation of a tree branch, with technical miners behind it Conflict of interest.

The BCH “hard fork” was initiated by Craig Steven Wright, an Australian who has long called himself “Satoshi Nakamoto”, and a loyal defender of BCH-Bitmain CEO Wu Jihan “struggles” within the BCH community. At present, the two sides are fighting a “computing power war”, hoping to influence the stable operation and trading of each other’s cryptocurrency through computing power.

The gods fight, and the mortals suffer. The “computing power war” under the BCH “hard fork” requires a large amount of mining machine computing power, which causes periodic computing power fluctuations and casts a shadow on the stock market. Bitcoin holders are worried that the aforementioned BCH mutual attacks will spread to With Bitcoin, risk aversion has risen and selling has intensified, making the already shrinking digital currency market another blow.

Bloomberg Intelligence analyst Mike McGlone warned that the downward momentum of cryptocurrencies could get worse. It predicts that the price of Bitcoin may fall to $1,500, and 70% of the market value will evaporate.

There are also determined investors under the plunge. Jack is a virtual currency player who has been paying attention to the development of blockchain technology for a long time and entered the market early. Recently, he shared a news about Bitcoin’s declining trend in his circle of friends, and added the text “Bought a few more by the way”.

Wu Gang, CEO of Bitcoin wallet platform Bixin said bluntly: “Bitcoin is still Bitcoin, no matter how others fork!”

Wu Gang said that computing power is only part of the consensus, not the whole of the consensus. Technological innovation and decentralized storage of user value are Bitcoin’s biggest consensus. “So the blockchain needs consensus, not forking. Forking is the big taboo of the blockchain industry.”

Post time: May-26-2022