Bitcoin plunge has shrunk the wealth of many rich people around the world, which has little impact on China

Jimu Journalist Zeng Lingzheng

After two consecutive days, after the market panic was hovered below $ 18,000, the evening of June 19, Bitcoin ended the 12 -day decline to return to more than 20,000 US dollars, and continued to maintain stability on the 20th.

Although the price has risen, the decline has caused further plunge in concerns. Industry insiders analyzed Jimu Journalists that the underlying logic of virtual currencies has become a global world currency, but due to the Federal Reserve's interest rate hikes, in the face of a strong US dollar, Bitcoin failed to reflect stability, and its underlying logic will be suffered again Examine. In view of the Federal Reserve's future may still usher in interest rate hike operations, Bitcoin prices have fallen in place. In China, financial institutions and Bitcoin are basically decoupled, so it will not have much impact on the macroeconomic economy.

Bitcoin price decline attracts thousands of people to explode

On June 18th and 19th, Bitcoin fell below $ 18,000 for two consecutive days, and the highest price of $ 69,000 from November 2021 has fallen 70%. extensive attention.

The value of Bitcoin was located at about $ 20,000 in 2017 and 2020 (picture source: Invessting.com)

On the afternoon of June 18, Bitcoin fell to a low of $ 17,600. Although the opening on June 19th, although it briefly returned to the top $ 20,000, it has fallen to $ 17,900 since then. Historical data show that the plunge has been wiped out about a year and a half of Bitcoin. With the speculating boom sweeping the financial market, the price of Bitcoin began to soar at the end of 2020, and reached its peak in November 2021, until the currency value before June 18 did not be less than 20,000 US dollars.

After two declines, the value of the Bitcoin currency on June 20 has returned to $ 20,000 (picture source: invessting.com)

The Wall Street Journal stated in the report that although the price of 20,000 US dollars has no special significance. However, according to previous price data, the price of Bitcoin exceeded US $ 19,78 million last time in 2017. Bitcoin has long been agreed that cryptocurrencies have entered a new stage of development and acceptance in recent years, and will not fall below the level of 2017.

The price decline has caused 10,000 people to lighten up. CoingLASS data shows that as of 8:00 on June 19, a total of 150,000 people in the digital currency field have been burst in the past 24 hours, with a total amount of liquidation of 567 million US dollars, equivalent to RMB 3.8 billion.

Bloomberg data on June 20 shows that Zhao Changpeng's wealth shrinks by 81.5%compared with the beginning of the year (picture source: blockberg.com)

Due to a large number of wealthy people in the world bought Bitcoin, the price decline has also caused a lot of wealth to shrink. Musk, a well -known fan of Bitcoin, purchased 43,200 Bitcoin at a price of $ 1.5 billion in early 2021, calculated at a price of $ 20,000 per coin, and its loss has also exceeded $ 600 million. Zhao Changpeng, the founder of Biance, the world's largest cryptocurrency exchange, surpassed Zhong Ye as the richest man in China in 2021, but as Bitcoin's price fell back 20,000 US dollars, Bloomberg data showed that Zhao Changpeng's asset valuation has fallen from the beginning of the year. Go to 81.5%.

Bitcoin underlying logic is questioned again

Although the price of Bitcoin has risen above $ 20,000 on the evening of June 19, it remained stable on June 20. However, the plunge has triggered the market's concerns about further decline in its prices, and the re -examining the underlying logic of digital currency.

Researcher Pan and Lin Xiangjimu, a researcher at the Digital Economy and Financial Innovation Research Center of Zhejiang University, analyzed that the significant retreat of virtual currencies in history is not uncommon. From the perspective of macroeconomic perspectives, recently, the Fed's sharp interest rate hike is the main cause of the CAB price retreat. The price trend of Bitcoin in the future also depends on when the Fed's tightening cycle is over. But the decline has caused the bottom logic of the virtual currency to be suspected again.

"$ 20,000 is not very meaningful, but it is just a psychological price, but the decline in Bitcoin will continue. Because the Federal Reserve is still in a tightening cycle, the current liquidity of Bitcoin is generally declining. The price is when the tightening cycle of the United States is over. "Pan and Lin explained," The reason why Bitcoin buyers believe in their value and purchase is because Bitcoin can become a world currency in the world. In the face of a strong US dollar, Bitcoin did not reflect stability, and buyers' beliefs on Bitcoin will be greatly reduced. Therefore, the underlying logic of the virtual currency, including Bitcoin, will be reviewed and inspected again. In view of the Federal Reserve's future interest rate hikes, the decline in virtual currencies has not yet been in place, we cannot make a certain predictive judgment on the future. But in the next 1-2 years, the decline of cryptocurrencies is more obvious and clear. "

Shen Meng, chairman of Xiang Song Capital, emphasized that the underlying logic of the Bitcoin believer is that it will become a currency that replaces the fiat currency in the future. There are problems such as currency super issuance. However, various experiences in the past show that virtual currencies represented by Bitcoin cannot replace gold and become value intermediaries.

"For example, the recent plunge in Bitcoin originated from the publicly stated that the Chinese financial industry institutions have expressed their denials to virtual currencies such as Bitcoin. The coin digging behavior is restricted, and its supply reduces the stimulus price increase, but it is actually a sharp decline. This has indicated that the transaction of virtual tokens is based on speculation. "Shen Meng said. Jimu Journalists noticed that last Tuesday Bitcoin Exchange Coinbase Global Co., Ltd. has issued a claim that it will reduce nearly one -fifth of employees. The company's CEO Brian Amsterram said that the company could not effectively manage the uncertain market because of the high cost of employees.

It has little impact on China

Some media will decline last weekend to compare with the "Lehman time" in the currency circle. In 2008, the bankruptcy of the US investment bank Lehman brothers had triggered a global financial tsunami. In addition, digital currency is considered a representative of risk assets, investors sell Bitcoin, and are considered to affect the market's preference for risk assets such as stocks.

However, Pan and Lin believe that although Bitcoin has a greater influence on investor wealth, it is limited to investors participating in Bitcoin trading. Even if Bitcoin has been existed for more than ten years, the current use of bitcoin has not been popular. This is still a niche investment field. Its negative effects may not be too great.

It stated that "most financial institutions have only followed Bitcoin in 2020, and most of the traditional financial institutions have remained cautious about Bitcoin. In my country, Bitcoin and financial institutions are basically decoupled, so the decline in Bitcoin will cause personal wealth The fluctuations, but the impact on the macro economy should not be too great. The Lehman brothers' business associated real estate, and the real estate industry's participation is much larger than Bitcoin. "

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