Why did the price of Bitcoin fall by 2 times?

Question

Fintech

Today, on the btc-e exchange, the price for 1 BTC fell to 551 USD. And now it jumps from 700 to 850.
The situation is the same on other exchanges. What is the reason?

Answer 1

Baidu announced the cessation of accepting bitcoins, it became impossible to pay for electricity for bitcoin, Chinese exchanges tightened identification measures (including when withdrawing bitcoins). In general, the medium-term consequences of the statement of the Central Bank of China .

Answer 2

Weren't you taught in school that the market price is set at a level where supply and demand balance each other?

Answer 3

Just a correction after going too fast.

Answer 4

the reason is that the Chinese government has spoken negatively about the virtual currency and its prospects. this is what screwed up the market. Americans seem to have tried to support, but something is not very successful.
if you want to track changes yourself, set yourself an exchange broker where they trade it and read all incoming messages. bidders react to them.

Answer 5

The reason is that speculators have cashed in and there is no point in supporting them with bitcoins now.
Let the price fall, those who scored at a high price will go under a little and compensate the speculators who have profited. In general, balance.