Bitcoin plunges nearly 11%, but investors are still increasing their holdings

Investors continued to buy Bitcoin in the cryptocurrency market on January 20, but failed to prevent the price of the world's largest cryptocurrency from plummeting.

According to CoinDesk data, as of press time, the price of Bitcoin has plummeted by 10.82% to $34,111.82. In the past 24 hours, the price of Bitcoin has reached a high of $37,689.15 and a low of $33,430.82. CoinDesk tracks prices from cryptocurrency exchanges such as Bitstamp, Coinbase, itBit and Bitfinex.

Tencent US Stocks, a Chinese online media, reported that one day before the sharp drop in Bitcoin prices, Janet Yellen, the nominee for US Treasury Secretary, suggested to members of Congress that the use of cryptocurrencies should be "reduced" due to concerns about terrorism. Yellen said that many cryptocurrencies are mainly used for illegal financing, at least in terms of transactions. It is necessary to study how to reduce the use of cryptocurrencies and ensure that anti-money laundering does not occur through these channels.

However, the possibility of a significant drop in Bitcoin prices seems small, as investors remain undeterred by the pause in the bull market and continue to accumulate the digital currency. According to data from blockchain data and information provider Glassnode, the number of addresses holding at least 1,000 Bitcoins increased from 2,407 to 2,438 in the past seven days, setting a record high. (Source: Slow Information)