The Meiyou site is indeed as famous as it is said to be. Overnight, 100,000 and 78,000 positions were liquidated, and the whole world was profiting from it. Fortunately, we banned it in China.
Otherwise, after 3-5 years, tens of millions of people will be liquidated, and tens of millions of families will jump off buildings or bridges together...
[Bitcoin fell below $60,000, virtual currencies suffered another heavy blow] Bitcoin fell below $60,000, Ethereum fell below $3,000, and other currencies fell to new lows for the year. In recent days, virtual currencies have once again fallen sharply. What exactly happened?
Bitcoin fell below $60,000, Ethereum fell below $3,000, and other currencies fell to new lows for the year. In recent days, virtual currencies have once again fallen sharply. What exactly happened?
On August 4, Beijing time, a Beijing Business Daily reporter noticed that Bitcoin plummeted again, falling below $60,000 again in the early morning of the same day. This was the lowest point since mid-July. As of 20:00 when the reporter published the article, the latest price of Bitcoin was $60,846, down 1.83% on the day, down 10.07% on the week, and up 1.16% on the month.
Bitcoin fell more than 10% during the week
"Snowflakes are falling around me one by one, and my assets are shrinking and disappearing bit by bit..." This weekend was not friendly to cryptocurrency investors, and it would not be an exaggeration to describe the losses as "a river of blood."
On August 4, the price of Bitcoin fell below the $60,000 mark, which made Bitcoin investors exclaim that "a big defense has been broken." Specifically, Bitcoin has been falling since the end of July, from a high of $71,000 to $67,000. After a short period of sideways trading, it fell to $64,000 and $62,000 on August 1 and 2. It was not until around 3 a.m. on August 4 that Bitcoin fell below the $60,000 mark and fell to around $59,000.
As of 20:00 on August 4, when the Beijing Business Daily reporter was writing this article, the latest price of Bitcoin was US$60,846, down 1.83% on the day, down 10.07% on the week, and up 1.16% on the month.
In line with the trend of Bitcoin, other virtual currencies also fell across the board. For example, Ethereum, SOL, Dogecoin and other virtual currencies also fell sharply. Among them, the latest price of Ethereum fell below $3,000, with the latest quotation of $2,915, a 24-hour drop of 2.73%, a weekly drop of 10.85%, and a monthly drop of 11.83%. The latest price of SOL is $143.59, a 24-hour drop of 5.77%, a weekly drop of 22.1%, and a monthly increase of 1.19%. The latest price of Dogecoin is $0.1, a 24-hour drop of 4.78%, and a weekly drop of 17.05%.
Regarding this plunge, Yu Jianing, co-chairman of the Blockchain Committee of the China Communications Industry Association and honorary chairman of the Hong Kong Blockchain Association, told the Beijing Business Daily reporter that changes in market expectations are an important factor leading to Bitcoin price fluctuations. After the US Federal Reserve announced that it would maintain interest rates unchanged and hinted that interest rates might be cut in the future, the market may have digested this part of the positive news in advance. In addition, the interest rate cut by the Bank of England also failed to boost market confidence, but further exacerbated market uncertainty.
Secondly, the movement of market funds also has a significant impact on the price of Bitcoin. According to data from the currency market website Coinglass, Bitcoin contract positions reached a record high of US$39.46 billion on July 29. To a certain extent, contract data represents market funds’ views on the market outlook. When contract positions are too high, the market may be too unanimously optimistic about the trend of Bitcoin in the short term, leading to the intervention of a large number of leveraged funds. Then the price began to correct, cleaning up some of the chips and triggering a series of serial liquidations, resulting in a rapid price decline.
In addition, the recent Bitcoin market has also been affected by other factors. Yu Jianing said that, for example, the start of the compensation of Mt.Gox brought some selling pressure, and the transfer activities of the Silk Road Bitcoin address managed by the US Department of Justice also caused market concerns, especially the outflow of funds from the Ethereum spot ETF. According to SoSoValue data, as of August 2, Eastern Time, the total net asset value of the Ethereum spot ETF was US$8.332 billion, and the historical cumulative net outflow has reached US$511 million.
It is worth noting that the fluctuation of Bitcoin prices also reflects the market's response to the macroeconomic situation. Yu Jianing believes that the market's response to interest rate cuts may not always be positive, especially in the current situation of great uncertainty in the global economy, investors may be more cautious, leading to market fluctuations.
Well-known economist Pan Helin also pointed out that the main reason for the plunge in virtual currencies this time is the retreat of the U.S. stock market technology bubble, which has led to different degrees of retracement of U.S. technology giants and virtual currencies. The retracement of virtual currencies is mainly due to the short-term rise and fall of virtual currencies due to Trump's support in the early stage. The recent plunge shows that investors are withdrawing from the previous hot track.
78,000 people's positions were liquidated in 24 hours
As the price of virtual currency continues to plummet, the number of currency margin calls is also continuing to intensify.
According to CoinGlass data, at 11:00 on August 4, a total of 75,152 people had their positions liquidated in the last 24 hours, with the liquidation amount reaching 191 million US dollars. In addition, the liquidation situation on that day continued. As of around 20:00 when the Beijing Business Daily reporter published the article, in the last 24 hours, the number of liquidations increased to 78,046, and the total liquidation amount also increased to 198 million US dollars. Judging from the liquidation situation, the majority of the people who lost money were investors who were bullish on the market.
