Reasons for Bitcoin's plunge
Feb 28, 2024 pm 03:11 PMThe reasons for Bitcoin’s plunge include: the Federal Reserve’s interest rate hikes, concerns about a global economic recession, cryptocurrency exchanges suspending withdrawals, geopolitical uncertainty, overheated speculation and other factors. Additionally, Bitcoin price fell below support levels and the miner reward halving also exacerbated the decline. The possibility of Bitcoin plummeting still exists, and investors should invest with caution.
There are many reasons for the collapse of Bitcoin, mainly including the following factors:
Macroeconomic factors:
FedRaiseInterestRate: In order to curb inflation, the Federal Reserve is expected to start raising interest rates in the second half of 2023. Raising interest rates will lead to a reduction in market liquidity and a general decline in the prices of risky assets, including Bitcoin.
Concerns about global economic recession: Factors such as the Russian-Ukrainian war and the epidemic have led to a slowdown in global economic growth. Investors' concerns about economic recession have intensified, and risk aversion has increased, causing the prices of risky assets to fall.
Cryptocurrency market factors:
Cryptocurrency exchange Celsius Network suspends withdrawals: Celsius Network is a large cryptocurrency exchange whose suspension of withdrawals triggered market concerns about cryptocurrency liquidity risks worries.
Three Arrows Capital Liquidation: Three Arrows Capital is a large cryptocurrency investment fund. Its liquidation led to a large amount of Bitcoin selling, exacerbating the market decline.
Everyone is watching recently
[shoudongurl]What is Bitcoin halving[/shoudongurl]
[shoudongurl ]Now how to buy and sell Bitcoin in China[/shoudongurl]
[shoudongurl]Will Bitcoin surge after the halving in 2024?[/shoudongurl]
[shoudongurl]Recommended software for trading Bitcoin[/shoudongurl]
[shoudongurl]Virtual currencies that may surge in 2024[/shoudongurl]
Geopolitical Uncertainty
Uncertainty and market volatility caused by geopolitical events such as the Russia-Ukraine conflict have caused investors to flock to safe-haven assets , such as gold, while selling risky assets such as Bitcoin.
Speculation overheating
The past few bull markets of Bitcoin have been accompanied by speculative overheating and bubble formation. When market sentiment is high, investors may purchase Bitcoin at a price higher than its intrinsic value. When the bubble bursts, prices fall sharply.
Technical factors:
Bitcoin price breaks through important support level: Bitcoin price fell below the important support level of $20,000, causing panic to spread in the market and triggering further declines.
Other factors:
In addition to the above main factors, the price of Bitcoin is also affected by other factors, such as:
Miners Rewards halved
Institutional investor participation
Exchange hack
For others Cryptocurrency Competition
China Regulatory Policies: The Chinese government has recently cracked down on cryptocurrency trading, causing Chinese investors to sell off Bitcoin.
The possibility of Bitcoin plummeting exists. Since the price of Bitcoin fluctuates greatly and is affected by a variety of factors, the possibility of another plunge in the future cannot be ruled out. Investors should carefully consider the risks and rewards before investing in Bitcoin.
The above is the detailed content of Reasons for Bitcoin's plunge. For more information, please follow other related articles on the PHP Chinese website!

Hot AI Tools

Undress AI Tool
Undress images for free

Undresser.AI Undress
AI-powered app for creating realistic nude photos

AI Clothes Remover
Online AI tool for removing clothes from photos.

Clothoff.io
AI clothes remover

Video Face Swap
Swap faces in any video effortlessly with our completely free AI face swap tool!

Hot Article

Hot Tools

Notepad++7.3.1
Easy-to-use and free code editor

SublimeText3 Chinese version
Chinese version, very easy to use

Zend Studio 13.0.1
Powerful PHP integrated development environment

Dreamweaver CS6
Visual web development tools

SublimeText3 Mac version
God-level code editing software (SublimeText3)

Hot Topics

Ethereum is a decentralized application platform based on smart contracts, and its native token ETH can be obtained in a variety of ways. 1. Register an account through centralized platforms such as Binance and Ouyiok, complete KYC certification and purchase ETH with stablecoins; 2. Connect to digital storage through decentralized platforms, and directly exchange ETH with stablecoins or other tokens; 3. Participate in network pledge, and you can choose independent pledge (requires 32 ETH), liquid pledge services or one-click pledge on the centralized platform to obtain rewards; 4. Earn ETH by providing services to Web3 projects, completing tasks or obtaining airdrops. It is recommended that beginners start from mainstream centralized platforms, gradually transition to decentralized methods, and always attach importance to asset security and independent research, to

In the digital currency market, real-time mastering of Bitcoin prices and transaction in-depth information is a must-have skill for every investor. Viewing accurate K-line charts and depth charts can help judge the power of buying and selling, capture market changes, and improve the scientific nature of investment decisions.

1. Ordinary users can purchase Ethereum through mainstream digital asset trading platforms such as Binance, Ouyi OK, HTX Huobi, etc. The process includes registering an account, identity authentication, binding payment methods and trading through market or limit orders. The assets can be stored on the platform or transferred to personal money sacrificial pie; 2. Ethereum has no fixed issuance limit, with about 72 million initial issuance, and it is continuously issued through the PoS mechanism and the destruction mechanism is introduced due to EIP-1559, which may achieve deflation; 3. Before investing, you need to understand the risk of high volatility, enable two-factor verification to ensure account security, and learn asset custody methods such as hardware or software money sacrificial pie; 4. Ethereum is the core platform of decentralized applications, DeFi protocols and NFT ecosystem, supporting the operation of smart contracts and promoting digital asset rights confirmation and flow

For newbies who have just entered the currency circle, choosing a market website that supports real-time trend analysis of multiple currencies and is simple to operate can help you quickly understand the overall market and grasp the price changes and trends of each currency.

1. First, ensure that the device network is stable and has sufficient storage space; 2. Download it through the official download address [adid]fbd7939d674997cdb4692d34de8633c4[/adid]; 3. Complete the installation according to the device prompts, and the official channel is safe and reliable; 4. After the installation is completed, you can experience professional trading services comparable to HTX and Ouyi platforms; the new version 5.0.5 feature highlights include: 1. Optimize the user interface, and the operation is more intuitive and convenient; 2. Improve transaction performance and reduce delays and slippages; 3. Enhance security protection and adopt advanced encryption technology; 4. Add a variety of new technical analysis chart tools; pay attention to: 1. Properly keep the account password to avoid logging in on public devices; 2.

First, choose a reputable trading platform such as Binance, Ouyi, Huobi or Damen Exchange; 1. Register an account and set a strong password; 2. Complete identity verification (KYC) and submit real documents; 3. Select the appropriate merchant to purchase USDT and complete payment through C2C transactions; 4. Enable two-factor identity verification, set a capital password and regularly check account activities to ensure security. The entire process needs to be operated on the official platform to prevent phishing, and finally complete the purchase and security management of USDT.

Binance APP is a world-leading digital asset service application, providing users with safe and convenient trading experience and comprehensive market information. Through its official mobile client, users can grasp the latest market trends, manage personal digital assets, and conduct diversified trading operations anytime and anywhere. This article will introduce in detail how to obtain and install the Binance APP through official channels, as well as its core functions and usage techniques, to help users use the platform safely and efficiently.

The price fluctuations of ETH have touched the hearts of countless investors, and discussions about whether its prices will bottom out again have never stopped. This article will review the price trends of Ethereum in recent years, and combine current market fundamentals and technical indicators to explore whether it is possible to pull back to the key support level of US$2,000, providing readers with a multi-dimensional market observation perspective.