Bitcoin surged for 4 consecutive days before plummeting by more than 300 points

Source: Beijing Business Daily

After a four-day cumulative increase of 18%, the price of Bitcoin fell sharply on December 25, and the current correction has exceeded 300 points. According to Huobi.com, as of 18:30 on December 25, the price of Bitcoin was 6,236 yuan per unit, and the lowest price on the day was 6,170 yuan per unit.

In the previous trading day, Bitcoin surged to 6597 points, a three-year high, which is only 1403 points away from the 8000 points set in November 2013. In fact, starting from the lowest price of 2351 yuan per bitcoin at the beginning of the year, Bitcoin has risen by 180% throughout the year, surpassing the growth of all real estate markets around the world. Its performance this year has surpassed gold to become one of the most eye-catching investment products.

In the view of Xiao Lei, chief researcher of Gold Wallet, the price of Brent crude oil, which performed best among all markets during the same period, only rose by 45%, and the price of gold denominated in RMB fell back to 16%. Bitcoin can be said to be the best performing asset in 2016.

In response to the continued rise in the market, Bitcoin exchanges have issued announcements to warn of risks. Huobi.com issued an announcement on December 23rd, saying that the price of Bitcoin has risen by more than 12% for three consecutive days, with an amplitude of more than 15%. Since Bitcoin has no price limit and 7×24-hour trading characteristics, investors need to pay attention to risks, invest rationally, and control risks within their own tolerance range. At the same time, Huobi.com also provides investors with a planned trading function, without the need to watch the market, to stop profits and losses in a timely manner.

As for why Bitcoin has risen so sharply recently, some analysts pointed out that it is mainly the result of multiple factors. First, the underlying technology of Bitcoin, blockchain, has been recognized by global financial institutions. The central bank's preparation to issue digital currency and the concept of blockchain have promoted the public's understanding of Bitcoin investment. Secondly, the investment environment this year, including the overall performance of stock and real estate investment, has been poor, and funds need high-quality investment channels.

Xiao Lei said that Bitcoin is no longer a simple digital currency that can be described as a bubble. Unlike many emerging digital currency concepts, the Bitcoin industry chain is actually very complete. The huge costs and stakeholders hidden behind Bitcoin are no longer a simple issue of a market value of $14 billion.