The two-hour drop was as much as $500. There may be three reasons for the Bitcoin crash last night.

According to Bitpush, there may be three reasons for the plunge in Bitcoin, the cryptocurrency with the highest market value, on Wednesday evening Beijing time.

Crypto media Cointelegraph published an article saying that on Wednesday, the price of Bitcoin fell from around $8,000 to around $7,500, a drop of $500 in two hours, setting a five-month low for Bitcoin.

It believes that the first reason is technical. Since Bitcoin fell below $9,500 on September 24 and entered the oscillation range of $8,000 to $8,500, the price has fallen below $7,800 eight times in the past month. From a technical point of view, Bitcoin's short-term trend has tended to be bearish, and the long-term bearish bias is gradually increasing.

Due to the sudden drop in Bitcoin prices, long positions worth $200 million on the BitMEX exchange were liquidated. According to Twitter analyst "taiwandan", the Bitcoin liquidation on BitMEX may have started with a huge buy order of 3,600 BTC on the Bitstamp exchange. Taiwandan said, "The bids from $7,800 to $6,200 disappeared in less than 15 minutes." Data from TradingView also showed that the price on Bitstamp fell sharply before the price on other major exchanges fell sharply.

The second reason for the drop in Bitcoin prices is believed to be related to the hearing of Mark Zuckerberg, CEO of social media giant Facebook. The sharp drop in the Bitcoin market occurred two hours before the hearing began. Since the encryption industry is as susceptible to news as the traditional market, this may also impact the price of Bitcoin.

The third speculation about the price of Bitcoin stems from the breakthrough in quantum computing by the tech giant Google, which announced that a single computer could perform calculations that would take a supercomputer 10,000 years to complete. Quantum computers have long been considered a huge threat to the crypto industry, and as this news spreads in the New York Times, Bloomberg, and crypto media, some crypto investors may be affected.

Regardless, the overall market sentiment is not optimistic. According to QKL123 data, as of press time, the price of Bitcoin fluctuated around $7,500. Previously, Bitcoin opponent Peter Schiff said that Bitcoin has formed a head and shoulders top pattern and it may fall to $2,000.