Bitcoin Rises Above $28,000 USD and Then Falls, Market Fears About Coming Regulation

Bitcoin continued its upward trend during the Christmas holidays, and yesterday it reached a high of 28,288.84 US dollars, gradually approaching the 30,000 US dollar mark. However, investors also took advantage of the historical highs and then cashed out. Bitcoin fell to the level of US$26,000 today. And under the enthusiasm of funds, there are also voices in the market that are worried that the regulator may act.

The cryptocurrency market began to flourish at the end of the year. After Bitcoin broke through the high in December 2017, it continued to hit historical highs. Analysts also generally expected that it was not far from the US$300 million level. As of 9 p.m., Bitcoin reported $27,106.33, a drop of less than 1%, while the turnover within 24 hours was $60.476 billion, and the market value has exceeded $500 billion. In the past 30 days, its price has risen 56.2% cumulatively, starting from the level of US$7,200 year-to-date, and it has risen more than twice. It can be described as the most eye-catching asset this year.

Benefited from the loose monetary policies adopted by many countries and the gradual introduction of digital currencies into the crowd, traditional institutional investors have also begun to be willing to invest funds in the cryptocurrency market, pushing up the prices of Bitcoin and Ethereum. However, the rapid rise of Bitcoin also worries some investors that it may attract the attention of regulators and even tighten supervision.

Meltem Demirors, investment director of CoinShares, a digital asset management platform, told Bloomberg yesterday that when the Democratic Party takes over the presidency in the United States, it may advocate more supervision of the cryptocurrency market, causing the industry to face more challenges and worry Supervision may become the general direction of governance. Guy Hirsch, the managing director of the eToro US, an online trading platform, also pointed out that after the US President-elect Bibb took office, his government’s attitude towards cryptocurrencies is still unclear, and there is a chance that Bitcoin will become more eye-catching or attract supervision. It is difficult for the market to grow at the current rate.

As for Ripple, which has been caught in the regulatory turmoil recently, it still has not been able to get rid of its weakness. After falling to a new low of US$0.22 in three months last Monday, it rebounded during the holiday and rebounded by nearly 8.5% today. The level of 0.3 dollars is hovering. On the contrary, Ether, the second largest in market value, is still sought after by funds. Today it rebounded 14.8% to US$723.81 and hit a 52-week high of US$737.92.