Reporter | Si LinweiThe cryptocurrency market is deeply mired in a downturn.On the morning of May 10th Beijing time, the price of Bitcoin plummeted below $30000, reaching a minimum of $29730
Reporter | Si Linwei
The cryptocurrency market is deeply mired in a downturn.
On the morning of May 10th Beijing time, the price of Bitcoin plummeted below $30000, reaching a minimum of $29730. The 24-hour decline was nearly 12%, reaching the lowest point in 2022 and the lowest point since July 2021.
Ethereum, another pillar of cryptocurrency, also fell simultaneously, with its lowest price reaching $2197, below $2200, and a 24-hour decline of 8.71%.
As the two pillars fall below critical levels, the overall market value of cryptocurrencies has further shrunk. According to CoinMarketCap data, the current total market value of cryptocurrencies has dropped to $142 million, with a 24-hour decline of over 9%.
The decline in currency prices is transmitted to the derivatives and DeFi sectors, causing a chain reaction.
In terms of the derivatives market, according to Coin data, the total online exposure in the past hour was $149 million, and the total online exposure in the past 24 hours was $1.03 billion.
In terms of the DeFi field, according to data from Ouke Cloud Chain, in the past 24 hours, the total clearing amount of DeFi mortgage loans across the entire network has reached $70 million, a new high in nearly 90 days. Among them, the top three projects with liquidation amounts are Venus ($27.79 million), Aave ($25.18 million), and Compound ($11.8 million).
The rest of the cryptocurrency ecosystem, including stable currency, NFT, and SocialFi, are all spared.
The USD price of the algorithm stable currency project, which has received the most attention recently, has dropped to $0.62, and it is severely off anchor from the anchor price of $1. Its linked token LUNA has also dropped to $27, a drop of over 60% in 24 hours. Previously, the official Luna Foundation address of the project had previously transferred all $1.4 billion worth of Bitcoin, and now 28205 Bitcoins worth $840 million have been transferred. But the latest news shows that the foundation has once again transferred out all its Bitcoin reserves, with frequent actions.
Among NFTs, none of the top NFT projects were spared. According to NFTGo.io data, blue chip NFT series flooring prices such as "Boring Ape" BAYC and "Red Bean" Azuki have all experienced a 24-hour drop of over 20%. The price of BAYC series NFT flooring is currently at 89.9ETH, a 24-hour decrease of 20.49%; The price of Azuki series NFT flooring is currently at 17ETH, with a 24-hour decline of 25.27%.
And the popular "running shoe" project StpenN in recent months has not been spared, with its project token GMT price dropping by 30% within 24 hours and nearly 40% within 7 days.
The continuous decline of cryptocurrencies in this round is consistent with the US stock market.
On May 10th, it was reported that the US stock market closed sharply lower on Monday, with the Dow falling more than 650 points, the S&P 500 index falling below 4000 points, and the Nasdaq plummeting 4.29%.
Technology stocks have become the hardest hit areas, with Amazon falling 5.2% to its lowest level since April 2020; Apple fell 3.3%, taking back its gains since March 14th; Google's parent company Alphabet fell 2.9% to a one-year low.
The seven major technology giants in the US stock market - Apple, Microsoft, Tesla, Amazon, Nvidia, Meta (the parent company of Facebook), and Alphabet (the parent company of Google) - lost over $1 trillion (approximately 7 trillion yuan) in market value within three days.
Stocks related to cryptocurrency also fell across the board. Coinbase, the largest compliance exchange in the United States, fell below $90, the lowest point in history. Its opening price was about $350, and it has now fallen nearly 75%.
WeChat Capital, which holds a heavy position of 120000 Bitcoins, fell 25.5% on a single day, hitting a price of $219, and continued to decline by 5% after hours.
In other aspects, Jianan Technology fell by over 25% in a single day, while the Ninth City fell by 13% in a single day. At the same time, the stock market currency market fell into a slump quagmire.
The trigger for this sharp drop in US stocks was the recent interest rate hike by the Federal Reserve.
Last Thursday, Federal Reserve Chairman Powell announced that the Federal Reserve would raise interest rates by 50BP to the 0.75% -1% range, marking the largest single rate hike since 2000. He also announced that he would reduce his balance sheet by $9 trillion starting from June 1, reduce it by $47.5 billion per month, and raise it to $95 billion within three months.
Behind its insistence on raising interest rates despite the confidence of US stock investors is the current high inflation rate in the United States. According to foreign media reports, the Federal Reserve stated on Monday that the high inflation rate, coupled with a sharp rise in interest rates, is one of the biggest recent risks facing the US economic system. At the same time, it warned that Russia's invasion of Ukraine may also affect financial stability.
But amidst the continuous decline in the US stock market, Wall Street institutions such as Goldman Sachs, JPMorgan Chase, and Bank of America have all expressed concerns about the outlook for the US stock market, suggesting that it is not the end at present.
With the decline of US stocks, cryptocurrencies, which are also risky assets, have also suffered heavy losses. As of the time of publication, the price of Bitcoin has risen to $30000 and is currently at $30946.
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