How to treat the recent devaluation of virtual currency?

In May this year, the virtual currency 19 collapsed across the board. Within 24 hours, 480,000 people broke positions, with a total amount of 5.92 billion US dollars, or about 38 billion RMB. Among them, bitcoin fell to a minimum of $29,000, a drop of more than 30%. Compared with the all-time high price of $65,000 in mid-April, Ethereum once fell by 46%, while dogecoin fell by as much as 30%. For virtual currency investors, May 19 is comparable to the darkest moment. The transaction price of cryptocurrency has soared in the previous six months, and it has been holding bitcoin since September 2020.

It continued to skyrocket, soaring 300% in six months, far exceeding assets such as stock market, real estate, gold and silver. The main reason is that under the epidemic situation, under the environment of quantitative easing and low interest rates in the United States, funds entered the bitcoin market for anti-inflation and tax avoidance. This virtual currency diving is mainly because many countries in the world have publicly expressed their desire to boycott virtual currency recently. On May 18, the Bank of China issued an announcement on preventing the speculative risk of virtual currency transactions, which has the greatest influence. In addition, the siege of circle B is not only a trade siege, but also a gold mining siege. On the same day, the Inner Mongolia Development and Reform Commission issued a document to set up a reporting mechanism for virtual currency mining enterprises. If you think about it carefully, you will understand that mining consumes a lot of energy, but it hardly contributes to local tax revenue, and it also affects the peak of local carbon dioxide emissions and the achievement of carbon neutrality. Some netizens asked why other countries have limited influence in resisting virtual currency. Only when the announcement of the Bank of China came out, the virtual currency plummeted instantly. This is not to say how powerful the Bank of China is, but that China society is deeply involved in virtual currency. At present, Qian 'an, the world's largest virtual currency exchange, is the top 20 exchanges founded by China people, and most of them are also founded by China people, but all of them have moved their registered places abroad. In addition, in the world of virtual currency, whether mining or issuing coins, most people who make big money come from China, and most people who lose money also come from China. Because China has the most participants, more people eventually become leeks. This wave of operations by the central bank has caused virtual currency to plummet, but it is beneficial to the stock market. Now, the total market value of virtual currency has reached $2 trillion. The daily trading volume of only one cryptocurrency exchange exceeds that of Shanghai and Shenzhen stock markets, and at least half of the global virtual currency transactions are provided by Zhongmin. Now the central bank is under pressure to conduct virtual currency transactions, which is beneficial to A shares. To sum up, we can't predict the future of cryptocurrency, but what is certain is that although China's supervision will be late, it will certainly not be absent, and every move of supervision will also affect the cryptocurrency market, which is the biggest risk facing the cryptocurrency market at present!