Even break eight barriers! Bitcoin once fell below $48,000

After experiencing a sharp rise over the weekend, Bitcoin continued to fall on Monday, with the price continuously falling below the 55,000, 54,000 and 53,000 mark, reaching the lowest of 52,724 USD/piece, and the 24-hour decline expanded to 8%.

Ten minutes before the opening of the US stock market on Monday, the mainstream encryption digital cash accelerated its diving, and Bitcoin dropped more than $3,000 in five minutes, then quickly dropped below $48,000 after falling below the $50,000 mark, and the decline expanded to over 17%. Ethereum's intraday decline expanded to 20% to $1,547.77.

Earlier, U.S. Treasury Secretary Yellen said that Bitcoin is often used for illegal financing, and its application efficiency is low.

Bitcoin has risen rapidly this year. In the past six months, the price of Bitcoin has increased by about 350%. The market value of Bitcoin exceeded $1 trillion last Friday, which became an important milestone in the price breakthrough of the most popular cryptocurrency in the world.

On Sunday, bitcoin set a new record high, with the price soaring to the highest level in history of 58,350 USD/piece. For the first time in history, the price of one bitcoin exceeded the price of one kilogram of gold.

However, Nikolaos Panigirtzoglou, a strategist at JPMorgan Chase, warned that although Bitcoin has risen about three times in the past three months, the liquidity of the market has deteriorated.

Panigirtzoglou said that the daily trading volume of Bitcoin spot and futures market is about 10 billion US dollars, while the daily trading volume of gold is 100 billion US dollars. "At present, the liquidity of Bitcoin market is much lower than that of gold or S&P 500 index, which means that even a small capital flow will have a major impact on prices."

This makes it possible for Bitcoin to rise and fall sharply, and the specific trend depends on the market's enthusiasm for digital cash.

The recent rapid rise of Bitcoin also made Tesla CEO Musk, who invested heavily in Bitcoin, uneasy.

When replying to cryptocurrency skeptic and gold fan Peter Schiff on Twitter, he publicly stated that gold is better than bitcoin and legal tender. "Money is just data, which saves us from the inconvenience of barter." This data is the same as all data. There are delays and errors. " "So, Bitcoin and Ethereum really seem to be high."

Tesla disclosed on Feb. 8 that it had purchased $1.5 billion in bitcoin. If the number of bitcoins held by the company remains unchanged, Tesla's book profit of investing in bitcoins for one month is about 990 million US dollars, which is 37% higher than the company's net profit of 721 million US dollars last year.