Input 2021.02.24 08:28 | Revision 2021.02.24 08:28
Earlier, Bitcoin plunged for two consecutive days until this day. According to CoinMarketCap, an American cryptocurrency market relay site, as of 4 p.m. on this day, Bitcoin is recording $48,069, a decline of 11.51% from the day before.
The day before, it plunged close to 13%, and 1 Bitcoin = $50,000 collapsed. Nevertheless, Bitcoin is still up 60% from the beginning of the year and 360% from the same period last year.
Goldman Sachs analyzed that bitcoin plunged for two days in a row as investors who owed debt because the interest on the loan was too high.
According to Goldman Sachs, the rise of bitcoin continued this year, attracting huge amounts of money through loans by investors looking to invest in bitcoin futures. Because of this, interest on loans soared to 144% per annum.
Goldman Sachs pointed out that this situation is not normal, so the price of bitcoin must fall in order to return the loan rate to its original state.
In addition, remarks by Finance Minister Janet Yellen and Chief Executive Officer Elon Musk had a major impact on the Bitcoin crash.
“I don’t think bitcoin is widely used as a mechanism for trading,” said Minister Yellen at the New York Times’ online dealbook conference on the 22nd. “It (bitcoin investment) is often used for illegal financial activities. (Omitted) This is a very inefficient payment method, and the amount of energy consumed to process it is enormous.”
Tesla CEO Elon Musk, who set fire to the recent cryptocurrency rally, also said on the 20th that “Bitcoin and Ethereum prices are a bit high,” providing a start to the cryptocurrency crash.