OKEx data shows that on May 19, Bitcoin plunged in the intraday market, dropping nearly US$3,000 in half an hour, falling below the integer mark of US$40,000; as of press time, it had fallen below US$35,000. The current price has returned to the level at the beginning of February this year, a drop of more than 40% from the highest point of $59,543 at the beginning of this month. At the same time, the decline of dozens of other mainstream currencies in the virtual currency market has also rapidly expanded.

Industry experts said in an interview with a reporter from China Securities News that the value foundation of Bitcoin and other virtual currencies is relatively fragile. Investors should increase their risk awareness, establish correct investment concepts, and decide the allocation based on their own preferences and financial resources to avoid chasing ups and downs. .

Virtual currencies fell across the board

On May 19th, due to the loss of Bitcoin’s key price level, funds flooded wildly, and dozens of other mainstream currencies in the virtual currency market were slumped at the same time. Among them, Ethereum fell below US$2,700, down more than US$1,600 from its historical high on May 12. The “originator of altcoins” Dogecoin plunged by as much as 20%.

According to UAlCoin data, as of press time, virtual currency contracts on the entire network have liquidated more than 18.5 billion yuan in one day. Among them, the longest loss of the largest liquidation was heavy, with an amount of 184 million yuan. The number of major virtual currencies in the entire market rose to 381, while the number of declines reached 3,825. There were 141 currencies with an increase of more than 10%, and 3260 currencies with a decrease of more than 10%.

Pan Helin, executive dean of the Institute of Digital Economics of Zhongnan University of Economics and Law, said that Bitcoin and other virtual currencies have recently been hyped up, prices have been raised to very high positions, and risks have increased.

In order to effectively curb the rebound in virtual currency trading hype activities, the China Internet Finance Association, the Bank of China (3.270, -0.01, -0.30%) industry association, and the China Payment and Clearing Association jointly issued an announcement on the 18th (hereinafter referred to as the “Announcement”) to require members The institution resolutely resists illegal financial activities related to virtual currency, and at the same time reminds the public not to participate in virtual currency-related transaction hype activities.

There is little hope for a short-term rebound

Regarding the future trend of Bitcoin and even virtual currencies, an investor told the China Securities Journal: “There is little expectation for a rebound in a short period of time. When the situation is uncertain, the main thing is to wait and see.”

Another investor said: “Bitcoin has been liquidated. Too many newbies have recently entered the market, and the market is messy. However, strong players in the currency circle have almost transferred all of their Bitcoin to newbies.”

Glassnode statistics show that when the entire virtual currency market becomes chaotic due to extreme market conditions, investors who hold Bitcoin for 3 months or less will have frequent and crazy moves in the short term.

Virtual currency practitioners pointed out that from the data on the chain, the number of bitcoin holding addresses has stabilized and rebounded, and the market has shown signs of increasing holdings, but the upward pressure is still heavy. From a technical perspective, Bitcoin has maintained a high level of volatility within 3 months, and the recent price has increased downward and broke through the neckline of the previous dome, which has brought greater psychological pressure to investors. After dropping to the 200-day moving average yesterday, Bitcoin rebounded in a short-term and is expected to stabilize near the 200-day moving average.