Bitcoin's "bloody" Sunday 

The past weekend was a sad one for Bitcoin investors. Within two days, the price of the cryptocurrency fell by more than 18%, from $62,500 on Saturday to $50,900 on Sunday. 

On Sunday, Bitcoin price plummeted by $10,000/day from the opening price of $60,500. At the end of the day, the decline stopped with a slight recovery. This helped Bitcoin keep its close price at $56,150.

Bitcoin price fell by $11,600 within two days.

There were many reasons for Bitcoin price's sudden drop. Firstly, a coal mine in Xinjiang (China) collapsed on April 11 leading to widespread power outages. This is an area which hosts a large number of Bitcoin mining machines to take advantage of cheap coal-fired power. 

Bitcoin mining involves solving algorithms to confirm transactions. Power outages in Xinjiang significantly reduced the hash-rate, directly affecting Bitcoin mining as well as network performance.  This is considered to be the direct cause of the sharp drop in Bitcoin price over the weekend.

Besides the aforementioned incident, there are rumors that the US Treasury Department will prosecute a number of companies for money laundering through cryptocurrencies. Earlier, the world saw the plunge of Ripple (the cryptocurrency once ranked third) in a legal battle with the U.S. Securities and Exchange Commission (SEC). 

Although this information has not been verified, it has contributed to instability and confusion among investors. 

These factors mainly caused the price of Bitcoin - the cryptocurrency with the largest capitalization in the world - to unexpectedly drop. This situation had a negative impact and caused the price of most of the other cryptocurrencies on the market to plunge.

Technical staff check Bitcoin mining machines at a mining camp in Inner Mongolia (China). Besides Xinjiang (China), these are the two regions with the most Bitcoin mining farms in the world. They are taking advantage of cheap electricity prices.

What did Vietnamese investors think when Bitcoin prices plunged?

Confusion is the best word to describe the psychology of many Vietnamese investors over the weekend. On online forums and social networks, this topic was a hot issue of discussion over the weekend.

In general, investors were divided into two groups. The new investors felt anxious and unstable. But experienced investors saw this as a good opportunity to buy more.

Mr. Hoang Hieu, an investor from Ho Chi Minh City, told VietNamNet that with three years of experience in the cryptocurrency market, he was not surprised by the fall of Bitcoin price. However, a drop of 18% in just two days caused him to worry. This was also the general situation of investors who went through the "bubble" period of Bitcoin in 2017.

Ms. Nguyen Hoai – a new investor – was comfortable because she had determined that Bitcoin is an investment for the long term. She was also warned by her friends that Bitcoin price would fluctuate with a large margin, from 10-20%, much more than gold or stocks.

What did Vietnamese investors think when Bitcoin prices plunged?

“Investing in Bitcoin or cryptocurrencies in general is a risky investment. The price fluctuation is normal. I will not cut losses and only sell Bitcoin when it makes a profit," Hoai said.

According to analyst Do Quan, Bitcoin's uptrend will only transform into a downtrend if the BTC price closes below $46,000. That is the time when investors should feel worried.

The sharp decline of Bitcoin price over the weekend only means that Bitcoin price is transitioning from a bullish state to a sideways trend. More time, at least until late April, is needed to observe whether the price accumulates to go up or down, he said.

Having been associated with the financial investment market for many years, analyst Do Quan said that it is not advisable to follow the psychology of the crowd. To invest in Bitcoin, cryptocurrencies or financial markets in general, investors need to have to be knowledgeable.

According to website CryptoQuant, although the price of Bitcoin has decreased by nearly 20%, the number of Bitcoin on exchanges has not increased, but is falling. This shows that many investors see this as an opportunity to buy more Bitcoin.

History shows that despite strong volatility, Bitcoin price is still moving upwards. Unlike previous years, this year cryptocurrencies are no longer only a playground for small investors, but also investment funds. Many believe that Bitcoin will be the future of the digital financial market.

Trong Dat

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