Only invisible risks are called risks!
The virtual currency market in recent days can be said to be caught off guard. If yesterday's market was a light breeze and drizzle, today's market is a storm. Today, Bitcoin once plunged more than 8%, and major currencies such as Ethereum fell by more than 10%. In the past 24 hours, more than 230,000 people were liquidated, with losses exceeding US$680 million.
It is worth noting that the stock market, led by the US stock market, continues to hit record highs. So, what is the reason that virtual currency is separated from the stock market? Is this a retreat of risk aversion or a precursor to the arrival of the black swan?
Analysts believe that the virtual currency sell-off may be related to geopolitical elections and supply. Operators of power-hungry computers that support the Bitcoin blockchain are continuing to bear the financial blow of the so-called halving in April, which limits the new tokens they can earn through work. One of the responses of these Bitcoin miners is to sell part of their token inventory. In addition, demand for US Bitcoin exchange-traded funds has weakened, and the government is disposing of seized tokens.
