All of a sudden! Bitcoin plummeted nearly 20%! At one point, it fell below $52000! Many people lost a lot! What happened behind it?

Over the past weekend, the major cryptocurrencies represented by bitcoin experienced a sharp drop due to the impact of tightening supervision and other concerns. The lowest value of bitcoin fell below US $52000, nearly a fifth lower than the recent high, which once again highlights the huge volatility and risk of bitcoin and other cryptocurrencies. However, there are still huge differences in the future performance expectations of cryptocurrency in the market.

The main cryptocurrency, led by bitcoin, has experienced a roller coaster market in recent days. Last week, boosted by the listing of coinbase, the cryptocurrency exchange, the price of bitcoin once exceeded US $64000, approaching us $65000. However, in the sharp fall over the weekend, it once fell below US $52000, with a price difference of nearly US $13000, a drop of nearly 20%. Other major cryptocurrencies followed suit. Although these major currencies rebounded soon, their gains in the past two weeks were basically reversed.

Fed chairman Colin Powell: cryptocurrencies such as bitcoin are highly volatile, so they are not really useful value storage tools, and cryptocurrencies do not have any endorsement support. They are more like speculative assets.

However, Brooks, who once served as the acting director of the office of the Comptroller of currencies under the US Treasury, holds a different view. He believes that one of the reasons why cryptocurrencies are favored is that the excessive over issuance of the US dollar makes cryptocurrencies bitcoin have the function of value storage.

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Every time bitcoin and cryptocurrency fall, many people will burst their positions and suffer heavy losses. One of the most pertinent suggestions on cryptocurrency investment may come from Ethereum founder vitalik Butlin, that is, don’t invest any money that you can’t afford to lose.