Reporter: Zhang Lingxiao Editor: Lan SuyingOn September 19th, Bitcoin continuously fell below two important levels of $20000 and $19000 in intraday trading, with the lowest price reaching $18389.21 per coin, a decrease of 7
Reporter: Zhang Lingxiao Editor: Lan Suying
On September 19th, Bitcoin continuously fell below two important levels of $20000 and $19000 in intraday trading, with the lowest price reaching $18389.21 per coin, a decrease of 7.87%, the lowest point in nearly three months. Compared to the record high of $69273.13 per coin in November last year, Bitcoin has accumulated a decline of 73.45%. According to financial data from Yingwei, as of press release, the price of Bitcoin has rebounded, rising slightly by 0.95% to $19604.10.
Bitcoin Trends Image Source: Yingwei Caiqing
In addition to Bitcoin, Ethereum also fell below $1300 at one point, with a maximum drop of over 10% and a minimum of $1291.05 per coin, reaching a new low in nearly two months. According to financial data from Yingwei, as of press release, Ethereum rose 3.62% to $1383.35.
On September 15, Ethereum officially completed the long-awaited merger of the main network and beacon chain (The Merge). This merger changed the consensus mechanism of Ethereum's ecology, making it move from the proof-of-work mechanism in the mining era to the PoS mechanism in the pledge era. Under the PoS mechanism, users no longer need to purchase hardware such as graphics cards and mining machines, but only need to participate in blockchain verification by pledging tokens.
However, since the merger, Ethereum has continued to decline by nearly a quarter. The recent decline has led Ethereum to recoup all its pre merger gains and underperform most cryptocurrencies.
The volatility of cryptocurrency prices has caused significant losses for many investors. According to CoinMarketCap data, over 130000 investors have been liquidated in the past 24 hours after selling out their positions, with a total amount of 438 million US dollars (approximately 3.069 billion yuan). Among them, Ethereum was the most severely exposed, with a total amount of 121 million US dollars; Following closely behind is Bitcoin, with a total exposure of over $114 million.
Market analysis suggests that the decline in cryptocurrency prices is related to the trajectory of the Federal Reserve's interest rate hike. CiniLu, CEO of consulting firm VennLink Partners, said, "Funds are flowing out of risky assets. After the Fed Chairman's statement, virtual currencies have sharply adjusted with US stocks
In addition, the latest attitude of relevant regulatory agencies has also raised new concerns in the market.
On September 15th, Gary Gensler, Chairman of the United States Securities and Exchange Commission (SEC), made his latest statement on the digital currency market at the Senate Committee on Banking, Housing, and Urban Affairs' Oversight Hearing. He stated that digital currencies and intermediaries that allow users to "pledge" their tokens may be regulated as securities. Ethereum is now a token based on proof of equity, and regulatory authorities may soon classify it as a security rather than a commodity such as Bitcoin.
Matthew Dibb, Chief Operating Officer of Singapore's cryptocurrency platform StackFunds, stated in a media interview that this bearish news will indeed trigger a market sell-off, and the Ethereum may even fall to $950 per coin in the coming months.
Daily Economic News
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