On the evening of March 12, the cryptocurrency market plummeted. BTC quickly dropped from $ 7,000 to $ 5,500 in 10 minutes. Other cryptocurrencies have also been sold off wildly. The top ten currencies by market capitalization have generally fallen by more than 20% in the past 24 hours.
The contract market is shed blood . According to Coin Coin data, the entire network in the past 24 hours has exploded a total of 2 billion US dollars.
Among them, BTC ’s short position was $ 1.29 billion, ETH was short of $ 174 million, EOS was short of $ 61.27 million, BCH was short of $ 84.27 million, LTC was short of $ 28.6 million, XRP was short of $ 36.54 million and BSV was short of $ 47.16 million. ETC closed a short position of USD 9.83 million and TRX closed a position of USD 3.61 million. The largest single short position occurred on the Huobi exchange, and BTC worth $ 58.32 million was exploded.
In this rapid plunge, more than 80,000 people have become victims of liquidation .
The total market value of cryptocurrencies has shrunk rapidly. According to QKL123 data, the total market value of cryptocurrencies has plummeted by more than 24% within 24 hours, only 1.3 trillion yuan.
At the same time, the USDT premium rate has soared sharply. The USDT over-the-counter price was reported at 7.45 yuan. Compared with the current USD exchange rate of 7.0035, the premium rate reached 6.37%. This signal can usually be seen as an investor selling cryptocurrency USDT on the market to cash out or an over-the-counter investor buying USDT cryptocurrency with currency.
At present, there is still 58 days before the halving of Bitcoin, and many investors believe that the halving will lead to a sharp rise in the price of the currency and crazy leverage. This large-scale liquidation will, to a certain extent, dampen investors' enthusiasm for long Bitcoin.
For the sudden plunge in the market, players are not yet clear on the specific reasons .
A few days ago, the CEO of Bitmex had predicted that Bitcoin could fall to $ 6,000 in the short term.
According to Cointelegraph, Crypto exchange Bitmex CEO Arthur Hayes said recently that Bitcoin cannot be prevented from being affected by the current market turmoil, and due to the corona virus panic, Bitcoin may fall to a lower level of $ 6,000. But Arthur Hayes still believes in the status of cryptocurrencies as a safe-haven asset, saying that by the end of 2020, Bitcoin could still rebound to $ 20,000 .
Cao Yin, managing director of the Digital Renaissance Foundation, said in an interview with Babbitt that the recent logic of Bitcoin's performance is the same as gold's. There is an influx of funds and an outflow of funds. However, at present, BTC is still a high-risk asset to most investors, and is affected by the herd effect. Therefore, recent short-term hype funds have flowed out . He also pointed out that from a logical point of view, the hedging nature of BTC lies not in its value stability, but in its risk irrelevance, that is, the fundamentals of the external world are not related to BTC, a native asset of the digital world. Unlike crude oil, metals, and stocks, BTC is not affected by external supply and demand and profit fundamentals. Therefore, it is optimistic that BTC can quickly return to the average after this shock .
A wealth history researcher and financial self-media blogger Lu richer said that Bitcoin is a brand new social experiment. In fact, if the epidemic continues, the value of Bitcoin is likely to rise, because Bitcoin's transfers and transactions do not Depends on actual circulation, and enough people trust. According to my own system analysis, the price of bitcoin hit a new low recently. Without leverage, now is a good time to start .
At present, the epidemic of new crown pneumonia is rapidly spreading, and global stock markets have been frantically selling, and even gold has fallen . Just today, the meltdown of the Asia-Pacific stock market has sprang up, and the stock markets of the Philippines, Thailand, Indonesia, and Pakistan have triggered fuses. Prior to that, the Brazilian stock market had melted twice, the US stock market all melted on Monday, and the Kuwaiti stock market was also melted on Monday.
The new crown epidemic is posing a severe challenge to the global economy. To cope with a possible economic crisis, the United Kingdom and the United States have already cut interest rates urgently. Other countries are also formulating bail-outs and other economic stimulus measures.
Although cryptocurrencies such as bitcoin have little relevance to the real economy, there are no eggs under the cover, and investors should pay attention to risks.