It is common for Bitcoin to rise and fall sharply.
On the morning of April 19, the price of Bitcoin suddenly crashed, with the price of Bitcoin "plunging" by more than $3,870 at one point and falling below the integer mark of $60,000 per coin, with the maximum decline of 6.1%.
Data shows that in the past 24 hours, more than 70,000 people had their positions liquidated in the virtual currency market, with the total amount of liquidations being US$208 million (approximately RMB 1.506 billion).
However, after the sudden flash crash, Bitcoin was strongly bought by bulls and rebounded violently.
As of 3:00 p.m. on April 19, Bitcoin rebounded to $64,575.9 per coin.
Bitcoin's rapid rise and fall have dealt a heavy blow to both long and short investors, causing countless people to suffer heavy losses.
It is worth noting that on the morning of April 2, the virtual currency market also suddenly crashed, falling below the two integer thresholds of US$67,000 and US$66,000 in 10 minutes, and the decline once exceeded 6%.
At that time, a total of 134,500 people had their positions liquidated in the virtual currency market within 24 hours, with a total amount of US$456 million (approximately RMB 3.3 billion).
Bitcoin is a digital currency that is not issued by any specific monetary institution. It is generated through a large amount of calculation based on a specific algorithm.
In the first half of last year, Bitcoin fluctuated around $25,000. After October, Bitcoin began to rise rapidly.
Driven by capital, Bitcoin broke through $70,000 in March this year. At high levels, the game between long and short Bitcoins was fierce.
Bitcoin, a new type of currency, has been controversial since its inception.
Mark Mobius, the father of emerging market investing, once tried to extinguish the public's enthusiasm for cryptocurrency: "Cryptocurrency is a religion, not an investment." However, for fanatics, this is just a story of "the boy who cried wolf", ignoring the fact that behind every cry, the real "wolf" is lurking.
Investment guru Munger has also always expressed his disgust for cryptocurrencies including Bitcoin. Munger believes that in the next hundred years, the price of Bitcoin "will tend to zero."
"I hope that cryptocurrencies will be banned immediately, and I admire China's ban on them. Of course, I have not invested in cryptocurrencies. I am proud to avoid them, and I disdain cryptocurrencies," Munger once said.
However, as the times progress, the value of Bitcoin seems to be redefined.
On January 11 this year, the U.S. Securities and Exchange Commission (SEC) approved the first batch of Bitcoin exchange-traded funds (ETFs).
On the same day, the Chicago Board Options Exchange (CBOE) also announced that it will begin trading Bitcoin spot ETFs issued by several asset management companies such as Fidelity, VanEck, Invesco and WisdomTree on January 11, Eastern Time.
On April 15 this year, Harvest International Asset Management Co., Ltd., a subsidiary of Harvest Fund Management, announced that the Hong Kong Securities Regulatory Commission has approved in principle Harvest's investment in two major digital asset spot ETF products, Bitcoin and Ethereum.
On the same day, China Asset Management (Hong Kong) also stated that China Asset Management (Hong Kong) has obtained approval from the Hong Kong Securities and Futures Commission to provide virtual asset management services to investors.
OSL Group Chairman and CEO Pan Zhiyong said: "We are very pleased to see that the in-principle approval for this project has been achieved. This is a landmark development for the ETF market."
