At midday on December 4, the market data showed that the bitcoin index once touched a low of $42,587.8 per coin, with a maximum drop of 20% in 24 hours. Bitcoin’s price against the U.S. dollar fell a maximum of 28.46% in 24 hours, hitting a low of $40,681.80 per coin.
As of now, the Bitcoin Index is at $47,095 per coin.
Ether fell below $3,500, down more than 21% in 24 hours. The contract market has blown a total of $1.13 billion across the network in the past 1 hour and $2.23 billion (about 14.2 billion RMB) in 24 hours.
The cryptocurrency market continued to fall as we entered December.
Back on December 1, Bitcoin’s highest price touched $59,000, close to a high of $60,000. But since then it has been on a waterfall.
On December 3, Bitcoin fell by over 12% intra-day, dropping over $5,000 and touching a low near $51,600, beginning a descent to the $50,000 mark.
On Dec. 4, bitcoin did not stop its decline, and after falling below the $50,000 mark in one fell swoop, it briefly pinned to near $42,000, an intra-day drop of more than $10,000 and the lowest price since Sept. 30.
This comes after bitcoin prices hit an all-time high in November, breaking through to $69,000 as the cryptocurrency’s overall market capitalization climbed to near $3 trillion. But after the failed breakthrough of the $70,000 mark, bitcoin’s price action was noticeably lackluster.
Ether, the world’s second largest cryptocurrency, followed Bitcoin’s decline and is currently quoted nearly 20% down from its all-time high of $4,898, but the magnitude of the shock is smaller than that of Bitcoin.
It is worth noting that recently, Firecoin, the cryptocurrency trading platform that previously announced the liquidation of mainland China, started to issue a station letter to remind mainland Chinese users to liquidate their account assets, and will clearly close the coin-filling function for mainland Chinese users on Dec. 14. the coin trading function for mainland Chinese users will be banned on Dec. 15, and on Dec. 31, OTC trading will be taken down.
It’s worth noting that while the bitcoin price is experiencing shocks, the world’s largest publicly traded company holding bitcoin, the bitcoin “giant whale,” is buying heavily.
According to MicroStrategy’s filing with the SEC on Monday, the company purchased 7,002 bitcoins in October and November, spending $414 million at an average price of $59,187 per bitcoin. After completing this “purchase,” MicroStrategy’s total bitcoin holdings have exceeded 120,000.
As of December 3, 2021, MicroStrategy held a total of 121,000 bitcoins with a total value of $6.841 billion, according to Oculus Cloudchain Chain Master statistics.
Among all companies with bitcoin positions, MicroStrategy is firmly in third place in terms of both the number of positions and the value of the positions, while if we look at the ranking among publicly traded companies alone, MicroStrategy surpasses Tesla, Galaxy Digital Holdings, Voyager Digital LTD Square, Inc, Coinbase Global, Inc and many other well-known public companies’ positions, strongly topping the list and even exceeding the total of all the positions of the subsequent public companies.
Bitcoin speculation is risky. 2017, the People’s Bank of China, in conjunction with the Central Internet Information Office and other seven departments issued a “Notice on Preventing the Risk of Token Issuance and Financing”, making it clear that virtual currency trading platforms and token issuance and financing ICOs (Initial Coin Offering) are suspected of illegal fundraising, behavior is illegal financial activities, and cleanup and consolidation work.
Since 2021, the People’s Bank has interviewed some banks and payment institutions on the issue of virtual currency trading speculation, requiring banks and payment institutions must strictly implement the “Notice on Preventing the Risk of Bitcoin”, “Announcement on Preventing the Risk of Token Issuance and Financing” and other regulatory provisions, effectively fulfill their obligations on customer identification, and not provide products or services such as account opening, registration, trading, clearing and settlement for related activities.
“We once again remind the general public that virtual currencies such as bitcoin are not legal tender and have no actual value to back them up.” On August 27, at the media briefing on the 2021 Financial Literacy Month, the People’s Bank of China’s Financial Consumer Rights and Interests Protection Bureau (hereinafter referred to as “media briefing”), Yin Youping, deputy director of the Bureau, said that virtual currencies are not legal tender. Yin Youping, deputy director of the Bureau of Financial Consumer Protection of the People’s Bank of China, said that virtual currency-related transactions are purely investment speculation, and that people should enhance their risk awareness, stay away from them consciously and protect their “money bags”.
Translated with www.DeepL.com/Translator (free version)
