The recent round of regulatory news has made many people's hearts tighten.

On December 5, the Domestic Mutual Finance Association and several other institutions issued a risk warning, which is the fourth time in the past five years that the alarm bell has been sounded. To be honest, every time such an announcement comes out, market sentiment fluctuates for a while.

Looking back, there was a reminder in April 2020 that it was mainly aimed at various routines of overseas platforms - false transaction volume, server "accidental" hanging at critical moments, etc. After that, the over-the-counter capital channels were strictly controlled, and I heard that many people's cards were frozen.

The May 2021 incident was even more intense, making it clear that the relevant transaction contracts were not protected by law and financial institutions could not provide services. I remember that at that time, BTC fell from $43,000 to less than 30,000 in one day, a drop of more than 30%, and the liquidation data of the whole network set a new record. The market was really wailing at the time.

In April 2022, it set its sights on NFT, not allowing cryptocurrency pricing and settlement, and not providing relevant financing support. As a result, the popularity of domestic digital collections has receded rapidly, the head platform has tightened the transfer rules, and a large number of small platforms have been directly shut down, and the speculative bubble has completely burst.

This new risk warning coincided with the flash crash of BTC at the beginning of the month (it rebounded after falling more than 7% in a single day, and it is said that more than 120,000 people liquidated their positions). Looking at this posture, market sentiment may have to be digested for a while in the short term. For those who participate in this market, risk awareness really has to be tightened at all times.