Global market stampede panic plunges: bitcoin has been bloodbathed, and the blockchain sector has plummeted

Author: Li Mao

Source: Hong Kong Caihua News Agency

Recently, the global epidemic of new crown pneumonia has intensified, and panic in the market has erupted collectively.

US stocks plunged nearly 10% yesterday, the biggest one-day drop since 1987. According to the latest Bloomberg Billionaires Index, the top 15 richest people in the world lost a total of US $ 46.4 billion last night, and their wealth has fallen by US $ 212.9 billion year-to-date.

March 12, 2020-This is a day to create "history" and a day to bring a heavy blow to global investors. Yesterday, the world fell into a "technical bear market". The Thai stock market melted, the Philippine stock market melted, the South Korean stock market melted, the Pakistan stock market melted, Indonesia melted, the Canadian stock melted, the Brazilian stock melted, the spot gold tumbled, and the US stock melted. The Dow fell 9.99%. … South American stock markets fell sharply, virtual currencies plummeted across the board …

In addition, the European stock market crashed across the board. The German DAX index, the French CAC40 index, and the European Stoxx 50 index all fell more than 12%, and the British FTSE 100 index fell nearly 10%. The Italian FTSE Index closed down nearly 17%. The European Stoxx 600 index closed down 11%, the largest one-day drop in history; New York gold futures closed at $ 1590.3 per ounce, a drop of 3.17%.

"Share God" Warren Buffett also lost $ 6.8 billion last night, and has lost nearly $ 20 billion since 2020. On March 11, Buffett, who had just experienced a US stock market meltdown a few days ago, said in an interview that as long as you have been playing in this market, you will encounter Shifang, but this time the scene is also "live a long time" (it takes me to 89 years of age to throw this one into experience). There are people trading in the market at all times, and it is normal for news to affect prices. This time is just as scary as the "Black Monday" in October 1987. The new crown and the oil war are enough for the market to drink.

However, what Buffett didn't expect was that the "live-see-it-yourself" remarks only passed three days ago, and once again the US stocks came out so fast.

Bitcoin is no longer a "safe-haven asset"

The World Health Organization previously announced on March 11 that Covid-19 Coronavirus is a global pandemic, and it will further ignite the panic that the global economy has entered a recession. All risk assets including stocks, crude oil, and junk debt are plummeting. The market lacked cash and Bitcoin was not spared.

Due to the intensification of the coronavirus crisis, risky assets have been sold around the world, and Bitcoin is no longer considered a "hedging asset."

In the past day (8 am on March 12-8 am on March 13), the total market value of the encrypted digital currency market has shrunk by $ 74.5 billion and is now reported at $ 139.3 billion. According to CoinmarketCap, a global currency price website, since 18:00 on March 12, the bitcoin market has once again staged a "big waterfall", with a sharp drop from $ 7,385 at around 18:00, after falling below $ 7,000 at around 18:44 However, it fell all the way down to below $ 6,000 at around 20:04. After a slight increase, the price fell again. At 21:54 it fell below $ 5900 and the quoted price was $ 5,895. It fell more than 20% in more than 4 hours.

According to Coin Coin data, the total amount of open positions in the entire 24-hour network was US $ 2.46 billion, or approximately 17.4 billion yuan. On March 13, according to the BITSTAMP market, the current price of bitcoin has fallen below $ 4,300, a drop of more than 42% in 24 hours. In less than a month, the price of bitcoin was almost cut, and just a month ago the bitcoin price remained Nearly $ 10,000.

Currently, the price of Bitcoin is still in a downward trend. As of 10:15 on March 13, bitcoin was quoted at $ 4269, compared with $ 18,7385 on March 12, the price fell by 42.19% in 15 hours, and the market value was calculated based on 18.267 million bitcoin circulation. Market value $ 56.9 billion has evaporated.

Earlier, according to Reuters, asset sales from bitcoin to precious metals occurred as the US and European stock markets plummeted, as investors were liquidating positions in their portfolios to raise cash. Some market analysts said that traders and investors are selling various asset classes, which is a panic move under the rush to cash out. Under the impact of the black swan epidemic, the panic in the capital market has intensified, investors have become cash king, and market liquidity has begun to appear abnormally scarce. Bitcoin, a high-risk asset, will be withdrawn from it in order to seek more security and liquidity. Good asset.

Regarding the multiple bitcoin plunges, Liu Feng, director of the Blockchain Technology and Application Research Center of the Institute of Artificial Intelligence and Change Management, Shanghai University of International Business and Economics, is mainly affected by three factors. From a macro perspective, virtual tokens are still Affected by the global economic environment, currently, in the context of the global economic downturn caused by many black swan events, virtual tokens cannot stand alone. At the same time, the blockchain industry has not been quiet recently. From the virtual token exchange FCoin The shutdown, and then the exchanges represented by Binance and others were accused of misappropriation of user assets and other frequent occurrences. Multiple events have damaged users' decentralized trust in virtual tokens. In the face of major economic shocks, there is also a mentality of throwing money to protect the capital.

The collective blockchain of Hong Kong and A cities plummeted

March 12 was a day of creating "history" and a day of heavy blows for global investors.

According to CNBC, the Chicago Mercantile Exchange (CME), which has launched bitcoin futures trading, announced that trading on the trading floor will be suspended from March 13. Cryptocurrency companies such as Coinbase have launched a remote office model, and some cryptocurrency exchanges and companies are beginning to implement new policies in response to the new crown epidemic.

The encrypted digital currency market is full of sorrows, and Bitcoin has become a hot search on Weibo due to the plunge. The industry said that ordinary consumers are not advised to participate in such illegal speculation with risks greater than benefits. In addition, in the case of soaring and plunging prices, it is recommended that supervisory authorities strengthen targeted supervision to alert investors to speculative trading risks to the maximum.

In terms of the stock market, due to the impact of the bitcoin slump in the global market, blockchain stocks in Hong Kong and A have also collectively plummeted. As of the close of noon today, among A-share companies, Jiaoke Technology Holdings (688015-CN), Sunrise Oriental (603366-CN), Ningbo Construction Engineering (601789-CN) fell more than 7%, Zhejiang Furun (600070-CN), Hengbao shares (002104-CN), Wintime wins (300377-CN), Xuanya International (300612-CN), Julong shares (300202-CN), Zhongying Internet (002464-CN), Kunlun Wanwei (300418 -CN), Hailian Jinhui (002537-CN), Maida Digital (002137-CN), and Annecy (002235-CN) and other collectively plunged more than 6%.

In addition, in the Hong Kong stock market, Huobi Technology (01611-HK) plunged more than 16% after the opening. As of midday closing, Huobi Technology (01611-HK) still fell 6.67%; Xiong An Technology (01647-HK) plunged 9.62%, ZhongAn Online (06060-HK) fell 7.92%, and Meitu Corporation (01357-HK) It also fell 2.33%.