China-Singapore Jingwei Client, January 22, according to the US Consumer News and Business Channel (CNBC) report, on Thursday, Bitcoin plummeted for the second consecutive day, falling by more than 10% within 48 hours, and the entire crypto market evaporated by dozens One hundred million U.S. dollars.

The total market value of all cryptocurrencies has evaporated more than 100 billion US dollars in the past 48 hours, from approximately 1.07 trillion US dollars to 918 billion US dollars.

　　According to data from the industry website CoinDesk, the price of Bitcoin fell 8% on Thursday to as low as $31,007, the first time it fell below the level of $32,000 since January 11.

　　According to reports, the world's most valuable digital currency has soared in a few weeks. Earlier this month, it briefly touched US$41,940, and then fell sharply in the following week.

The reason for its latest move is currently unclear, but investors told CNBC that this may be a natural adjustment.

　　Michael Sonnesen, CEO of Grayscale Investments, said: "Revisions are a natural part of any market, especially in the Bitcoin ecosystem. From 2016 to 2017, we experienced 6 corrections of about 30% or more. ."

　　Bitcoin trend chart

　　According to reports, Ether is the second-largest cryptocurrency by market capitalization, with a decline of nearly 9% in the past 24 hours, at a price of $1182.

According to data from Coin Metrics, Ethereum hit a record high of $1,439 on Tuesday.

　　Anthony Scaramucci, founder of SkyBridgeCapital, said: "I think you have to accept that Bitcoin has huge volatility and it is still at a very early stage." He also said, "If you look at Amazon's first three years, You will find that the price has fallen by 50%. The trend of Bitcoin is similar to this, because close holders of Bitcoin are putting Bitcoin on the market, and buying stability is increasing. But it is still not 100%."

　　The report pointed out that before the latest price trend of Bitcoin, Yellen, the nominee of the US Treasury Secretary, warned that cryptocurrency was “mainly used for illegal financing”.

Yellen stated that the government will “need to study various methods to reduce the use of cryptocurrency and ensure that money laundering does not occur through cryptocurrency.”

　　According to the report, although Bitcoin has risen by more than 140% in the past three months, this plunge still appears in the face of seemingly positive news.

On Wednesday, the asset management company BlackRock, which manages $7.8 trillion in assets, respectively submitted prospectuses for two funds that may buy bitcoin futures contracts. This is the biggest sign of institutional investors flocking to buy bitcoin so far.

　　Bitcoin bulls say that the main reason for Bitcoin's upward momentum in recent months is the increase in institutional demand for cryptocurrencies.

For example, some big-name investors have become believers in Bitcoin, and some asset management companies have also begun to add Bitcoin to their investment portfolios.

　　The report pointed out that the significant surge in cryptocurrency also benefited to a certain extent from the argument that in the unprecedented period of economic stimulus, it provided a store of value similar to gold, and some investors worried that this would lead to a surge in inflation.

　　However, skeptics worry that Bitcoin is just another market bubble waiting to burst.

This cryptocurrency is known for its volatility-it soared to nearly $20,000 at the end of 2017, and then plummeted the following year.

(Zhongxin Jingwei APP)