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What are the factors of bitcoin price instability

2022-05-06 15:12:15 browse: 86

The value of global encryption assets is currently relatively stable, and the decline caused by the conflict between Russia and Ukraine has stopped.BTCYesterday's breakthrough39000USD, current report38,505.27USD, intraday increase of8.58%In the next two weeks or more, the value of bitcoin will remain relatively stable.

The fear caused by the previous war between Russia and Ukraine was the main factor for the continued decline of bitcoin,FTXfounderSam Bankman-Fried(hereinafter referred to as SBF) He published his latest views on the situation in Ukraine and the crypto asset market on social media.SBF It is pointed out that the current sharp decline of bitcoin may be related to many factors. The war is shaking the asset system of the whole Eastern Europe. There may be a large number of assets sold off for war. People also have different views on the future asset policy.

    SBF It is believed that there are two relatively typical investment thoughts in the market. Fundamental investors choose to buy when falling, while algorithmic investors sell a lot based on the positive correlation between bitcoin price and S & P index. For whatever reason, the market shows the overall behavior of participants, and no one can predict the future.

However, during the conflict between Russia and Ukraine, bitcoin did not show strength, but fell along with the stock market, indicating that bitcoin does not have a risk aversion function. Therefore, to some extent, it proves that bitcoin is not only a risk averse asset, but also a real risk asset.

Among the other bitcoin logics, the stability of currency value has been proved to be nonexistent, and the transaction convenience is also subject to the supervision of various countries, becoming more and more difficult. In terms of security, bitcoin theft often occurs. At present, the mining computing power of bitcoin tends to be concentrated, and the mining pool begins to dominate the mining computing power. This also challenges the concept of decentralized assets of bitcoin. Therefore, bitcoin is in a poor situation on the whole. In fact, the price of encrypted assets is mainly synchronized with bitcoin, which is the starting point of encrypted assets, and bitcoin is also the most representative. Therefore, the future trend of digital assets will fluctuate with the fluctuation of bitcoin. At present, the world of bitcoin has become more and more unstable, and the market fluctuates greatly, but investors still need to do a good job in risk control. It is very important for all investors to find a reliable and safe trading platform.