Source: Finance Association
① On Tuesday, all investors in the coin industry experienced a terrifying day — Bitcoin prices once fell below the $62,000 integer mark, down about 8% throughout the day; ② in the 24 hours ending last night, the virtual currency market had at its peak more than 240,000 people liquidated positions; ③ and an even more shocking scene also appeared on real-time quotes on some platforms...
Earlier this month, how fast Bitcoin reached new highs, and how amazing is the pace of decline in recent days...
On Tuesday, all investors in the cryptocurrency industry experienced a terrifying day — the price of Bitcoin once fell below the $62,000 integer mark in the intraday period, falling about 8% throughout the day; the price of Ethereum plummeted by more than 10%.
According to CoinGlass data, in the 24 hours up to last night, at its peak, the virtual currency market had more than 240,000 people liquidated their positions, and the total amount of liquidated positions reached 664 million US dollars (about 4.8 billion yuan).
An even more shocking scene also appeared on real-time quotes on some platforms...
According to reports, due to the sharp drop in currency prices and massive sell-off in a short period of time, Bitcoin trading on the digital currency exchange BitMEX was abnormal on Tuesday — the price collapsed below 9,000 US dollars. At the same time, the price of Bitcoin on other exchanges was still above 66,000 US dollars. Many investors on the platform have suffered heavy losses due to the astonishing slippage.
According to Syq, an anonymous crypto community member, broke the news on social media that someone sold more than 400 bitcoins in batches on BitMEX on a scale of 10-50 bitcoins in just 2 hours last night. As a result, the Bitcoin trading pair on Bitmex slipped by more than 30%, and investors lost at least 4 million US dollars.
BitMEX later said it was investigating this unusual trading activity.
A BitMEX spokesperson said that the company investigated the incident and found that a small number of accounts were aggressive selling, which exceeded the expected market range. However, the platform still emphasizes that its system is working properly and that all user funds are still safe.
Coin Zone Fright
Obviously, after the price hit a record high at the same time as gold earlier this month, Bitcoin, which has always been known for its high volatility, high return, and high risk, is also undergoing a new wave of “washing the market” process.
The fervent interest of investors in the coin industry once drove the price of Bitcoin to an all-time high of 7,3798 US dollars last week, but now, many early buyers who have made a lot of money seem to be planning to take advantage of the heat and settle their bags as soon as possible. Currently, Bitcoin has dropped more than 10,000 US dollars from this historical high.
In terms of macro news, the arrival of “Super Central Bank Week” this week has also deterred Bitcoin bulls.
The Bank of Japan raised interest rates for the first time in 17 years this Tuesday, announcing the complete end of the global “era of negative interest rates” over the past ten years. And tonight the Federal Reserve will not rule out the possibility of “throwing an eagle” — many market participants are worried that the number of interest rate cuts during the year, as reflected in tonight's Federal Reserve interest rate bitmap, may be reduced to two from the previous three.
According to a set of statistics, Bitcoin spot ETF products on Monday saw the largest net outflow of capital since they were approved for establishment in January. Among them, GBTC, the largest grayscale ETF product, was particularly astonishing.
According to BitMEX Research data, GBTC set a single-day net capital outflow record of 642.5 million US dollars on Monday, and an outflow of at least 400 million US dollars on Tuesday.
Although a 52% increase in Bitcoin's price helped offset some of the losses, Monday's outflow from GBTC has brought the total outflow since January 10 to about $12 billion. GBTC was approved to switch from a trust to an ETF in January of this year. Currently, the fees are higher than those of its peers. This is one of the key reasons why it continues to experience capital outflows.
Todd Rosenbluth, head of research at market analysis firm Vettafi, said, “As currently the largest and most expensive Bitcoin ETF product, it is understandable that GBTC has experienced massive profit settlements and redemptions.” He also pointed out that “capital is not going to pour into these ETFs day in and day out; it is reasonable for people to make a profit after the price runs strong.”
editor/tolk