$BTC Below is a multi-faceted analysis of Bitcoin:

Technical Principles

Bitcoin is based on blockchain technology, utilizing a distributed ledger and a proof-of-work (PoW) consensus mechanism. Through computational power competition, nodes pack transactions into blocks and link them to the blockchain, ensuring data consistency and immutability, achieving a peer-to-peer electronic cash system and solving the double-spending problem.

Market Trends

• High price volatility: In 2025, Bitcoin's price fluctuated dramatically, plummeting to $88,000 at one point, while also exceeding the $100,000 mark. On June 6, Bitcoin fell below $101,000 per coin, with a daily decline of 3.55%.

• Multiple influencing factors: On the macroeconomic front, global economic growth is slowing, inflationary pressures are increasing, and interest rate hikes are raising the cost of capital, leading investors to have a lower preference for risk assets, impacting Bitcoin. In terms of industry regulation, some countries are tightening regulations, restricting Bitcoin trading and usage, which suppresses market demand. Additionally, technical issues such as transaction congestion and increased fees have also diminished its attractiveness as a payment tool.

Investment Risks

• Market risk: With high price volatility, short-term market fluctuations are intense, and uncertainty is high, posing significant potential financial losses for investors.

• Regulatory risk: Regulatory policies vary greatly and change frequently across countries; increased regulation may restrict Bitcoin trading and usage, affecting its market value.

• Technical risk: The Bitcoin network has technical vulnerabilities, with issues like transaction congestion and high fees impacting its application and value; additionally, there are security risks such as potential hacking attacks.

Development Prospects

On a positive note, with the development of blockchain technology, the application scenarios for Bitcoin may expand, and a global economic recovery could increase investor preference for it. However, on the other hand, uncertainties in regulatory policies, challenges in technological development, and market competition also introduce many variables to Bitcoin's development.