Bitcoin plunged 21% last night, or related to the US House of Representatives impeaching Trump

Political analysts believe that this will be a replica of the Clinton impeachment case, that is, the House of Representatives passed the impeachment and the Senate rejected it. In the process of Clinton's impeachment in 1998, US stocks fell and rose, and the political impeachment bottomed out. After that, the rebound regained lost ground and then reached a new high (of course, the current situation cannot be simply analogized with 1998).

On September 25th, according to OKEX data, Bitcoin plunged 21.7% in the early morning on Tuesday, falling to a low of $7,660. This is the first time since mid-June that Bitcoin has fallen below $8,000, the biggest drop in four months.

Industry analysts point out that the bitcoin plunge is caused by multiple reasons.

The first is Bitcoin's breakthrough in key resistance levels. BKCM CEO Brian Kelly said that $9,000 is a "main support". When Bitcoin fell below this level, it triggered a wave of "selling."

Secondly, it is related to the US House of Representatives Democrats who advocate impeaching President Trump.

At 5 am Beijing time, Pelosi announced the opening of impeachment and accused Trump of abusing his powers. He currently supports the impeachment of the Democratic Party to 174 people (435 in the House of Representatives and 235 in the Democratic Party).

Political analysts believe that this will be a replica of the Clinton impeachment case, that is, the House of Representatives passed the impeachment and the Senate rejected it. In the process of Clinton's impeachment in 1998, US stocks fell and rose, and the political impeachment bottomed out. After that, the rebound regained lost ground and then reached a new high (of course, the current situation cannot be simply analogized with 1998).

Risk assets have fallen substantially, and we need to see if the Fed is accelerating the pace of interest rate cuts after this incident.

Coincidentally, just a few days before Bitcoin plunged, the New York Stock Exchange's parent company, the Intercontinental Exchange, launched Bakkt and launched a Bitcoin futures contract to attract institutional investors who were hesitant to trade cryptocurrencies. These futures are "physically delivered", meaning that they are paid in bitcoin, rather than paying for futures contracts in cash, like the rival Chicago Mercantile Exchange.

For bitcoin prices plummeting, encryption investment company Maple Leaf Capital said two days ago that starting from Bakkt's launch of a physical delivery bitcoin futures contract, bitcoin prices will continue to fluctuate in the next 2-4 weeks, and there will be $2,000-$3,000. Volatility service. The agency also said that it is currently a bargain hunting opportunity and claims that if it is not ready to buy on dips, why should it come to the cryptocurrency market.

BitBull Capital CEO Joe Dipasquar said that the drop in bitcoin prices was partly due to the “cold reaction” to the new bitcoin derivatives. He also pointed out that the "hash rate" of the Bitcoin network (hash rate, a measure of the total computing power of global bitcoin miners) has suddenly dropped in the past 24 hours. But he pointed out that this may only be "temporary fluctuations."

Zheng Di, CEO of Dots Institutional Investor Community, also contributed to this article.

Author: Qin Jin

Produced: Carbon Chain Value (ID: cc-value)