The two-hour drop was $500. There may be three reasons for the bitcoin plunge last night.
More than the push news, Beijing City time on Wednesday night, the highest value of the cryptocurrency bitcoin collapse may have three reasons.
Encrypted media Cointelegraph said that the price of bitcoin fell from $8,000 to $7,500 on Wednesday, falling by $500 in two hours, setting a low for bitcoin in five months.
The first reason is that technically, since Bitcoin fell below $9,500 on September 24 and went into the shock range of $8,000 to $8,500, the price has fallen below $7,800 eight times this month. From a technical point of view, the short-term trend of Bitcoin has tended to bearish, while the bias of long-term bearishness is gradually increasing.
Due to the sudden drop in bitcoin prices, the BitMEX exchange's $200 million long position was liquidated. According to Twitter analyst "taiwandan", BitMEX's bitcoin clearing may start with a huge purchase of 3600 BTC on the Bitstamp exchange. Taiwandan said, "The bid from $7,800 to $6,200 has disappeared in less than 15 minutes." Data from TradingView also showed that Bitstamp's price fell sharply before other major exchanges fell sharply.
The second reason for the decline in bitcoin prices is believed to be related to the hearing of social media giant Facebook CEO Mark Zuckerberg. The big drop in the bitcoin market took place two hours before the start of the hearing, as the encryption industry is as susceptible to news as the traditional market, which could also impact the price of Bitcoin.
The third speculation about bitcoin prices stems from a breakthrough in the quantum computing world by technology giant Google, which announced that a computer can perform calculations that require supercomputers to complete in 10,000 years. Quantum computers have long been considered a huge threat to the encryption industry, and as this news spread in the New York Times, Bloomberg and encrypted media, some crypto investors may be affected.
In any case, the overall mood of the current market is not optimistic. According to QKL123 data, as of the time of publication, the price of Bitcoin fluctuated around $7,500. Bitcoin opponent Peter Schiff said Bitcoin has formed a head-and-shoulder shape that could fall to $2,000.