Crypto Market Plunges: Bitcoin Down Over 8%, Ethereum Down Over 11%, Liquidations Sweep Market

Crypto Market Plunges: Bitcoin Down Over 8%, Ethereum Down Over 11%, Liquidations Sweep MarketThe cryptocurrency market experienced a sharp sell-off in the past 24 hours. Bitcoin plummeted from over $60,000 to below the $54,000 mark, losing over $6,000 within 24 hours, representing a drop of over 8%

Crypto Market Plunges: Bitcoin Down Over 8%, Ethereum Down Over 11%, Liquidations Sweep Market

The cryptocurrency market experienced a sharp sell-off in the past 24 hours. Bitcoin plummeted from over $60,000 to below the $54,000 mark, losing over $6,000 within 24 hours, representing a drop of over 8%. Other cryptocurrencies followed suit, with Ethereum plunging over 11% and Dogecoin down over 16%. CoinGlass data reveals that over 230,000 liquidations occurred in the past 24 hours, with a total liquidation value of approximately $680 million, with Ethereum experiencing the largest single liquidation.

The trigger for this cryptocurrency flash crash is rumored to be the market's disappointment over the failure of the "Ethereum spot ETF to begin trading on July 4th." CryptoQuant data shows that $2.4 billion worth of Bitcoin with holdings of 3-6 months were transferred during this downturn, suggesting that some investors, particularly short-term speculators who traded on the "halving" benefit for Bitcoin at the beginning of the year, chose to sell off collectively.

Furthermore, the Federal Reserve's latest monetary policy meeting minutes revealed that most officials still believe more data on inflation decline is necessary before considering interest rate cuts. This injected a note of caution into the market, amplifying investor risk aversion towards risky assets.

The latest move by Binance, the world's largest cryptocurrency exchange, is also believed to have impacted market sentiment. Binance announced the suspension of trading services for six currency pairs: BTC/AEUR, ETH/AEUR, AI/TUSD, CHR/BNB, GAS/FDUSD, and LQTY/FDUSD, effective July 5th. While Binance did not disclose the specific reasons for the delisting, it stated that it regularly reviews all listed spot trading pairs and removes some trading pairs in cases of low liquidity or other factors.

It's worth noting that Binance recently added new trading pairs to its platform, including WIF/BRL, ZK/USDC, and ZRO/USDC. However, this service is not available to all customers. Currently, users residing in Canada, Cuba, Crimea, Iran, Netherlands, North Korea, Syria, the United States and its territories, and any non-government controlled areas of Ukraine are unable to trade these spot trading pairs. Since the beginning of the year, Binance has implemented multiple similar changes. Last month, it halted trading services for ALPACA/BTC, NFP/TUSD, MDX/BTC, QUICK/BTC, and XAI/BNB currency pairs. Months ago, Binance terminated all operations involving Monero (XMR), causing a significant drop in the price of this popular privacy coin.

In addition to exchange adjustments, the supply of cryptocurrencies is also increasing significantly. Public information indicates that there will be 5 new cryptocurrencies available for investment in July, namely 5thScape (5SCAPE), DarkLume (DLUME), Smog (SMOG), PlayDoge (PLAY), and Pepe (PEPE).

Miner Selling Exacerbates Market Decline

Bitcoin's recent slump is also closely linked to massive selling by cryptocurrency "mining" companies experiencing plummeting revenue. According to IntoTheBlock data, the number of Bitcoins held by "miners" has reached a 14-year low. In June, miners sold over $2 billion worth of Bitcoin, the highest level in over a year.

Following the Bitcoin mining reward "halving" in April, the revenue of Bitcoin "miners" has decreased significantly. Bitcoin "miners" have two primary sources of income: mining rewards and transaction fees. The halving event directly impacted "miners" mining rewards; however, "miners" operating costs, such as electricity bills and equipment expenses, did not decrease as a result. Consequently, many "miners" may face profitability challenges.

Recently, due to the inactivity of many "miners," Bitcoin mining difficulty has dropped sharply. The latest Bitcoin hash rate has fallen from 88 trillion to 83 trillion. Despite the decrease in mining difficulty, Bitcoin "miners" have experienced record lows in revenue over the past two months due to the "halving event." Kaiko data shows that "miners" total revenue has dropped from an average of $107 million per day before the "halving" to $30 million.

One "miner" stated that the plummeting cryptocurrency prices have significantly impacted mining equipment manufacturers' shipments and operating revenue. F2pool data shows that as Bitcoin's trading price falls below $58,000, low-efficiency "mining machines" face challenges in the current market conditions. Calculating at $0.06 per kilowatt-hour, Bitcoin "miners" such as Antminer S19, Whatsminer M30S+, and Whatsminer M33S+ have reached shutdown prices (the cost price of mining), meaning that operating them results in losses.

Future Outlook for the Crypto Market

The cryptocurrency market is currently facing multiple challenges, including macroeconomic uncertainty, tightening regulatory policies, and heightened market speculation. However, the cryptocurrency market also possesses immense potential, with its decentralized nature, high transparency, and efficient transaction capabilities attracting increasing attention from investors and developers.

The future development of the cryptocurrency market will depend on several key factors:

• Regulatory policies: Regulatory policies are a crucial factor influencing the development of the cryptocurrency market. The attitude and regulatory intensity of governments towards cryptocurrencies will directly impact the innovation and growth of the cryptocurrency industry.

• Technological innovation: Continuous innovation in cryptocurrency technology, such as blockchain technology and smart contract technology, will introduce new application scenarios and opportunities for the cryptocurrency market.

• Market demand: The demand for the cryptocurrency market depends on investor recognition of cryptocurrencies and their practical applications.

• Macroeconomic environment: Changes in the macroeconomic environment will also affect the development of the cryptocurrency market. For instance, factors like interest rate changes and inflation will impact investor willingness to invest in cryptocurrencies.

In conclusion, the cryptocurrency market is a market brimming with opportunities and challenges. Investors need to invest cautiously and closely monitor market fluctuations to achieve gains in a volatile market.

Here are some suggestions for investing in the cryptocurrency market:

• Implement risk control: The cryptocurrency market is highly volatile. Investors need to implement risk control measures and avoid investing all their funds in the cryptocurrency market.

• Select reputable trading platforms: Choose reputable and secure trading platforms to protect personal asset security.

• Conduct thorough research: Before investing, conduct comprehensive research on cryptocurrency projects, understanding their technology, team, market prospects, and other relevant information.

• Monitor regulatory policies: Keep abreast of government regulations regarding cryptocurrencies, being informed of the latest policy changes.

• Maintain rational investment: Avoid being influenced by market hype, maintain rational investment practices, and avoid blindly following the crowd.

The development of the cryptocurrency market is still in its early stages, and the future holds uncertainty. Investors need to invest cautiously and implement risk control measures.

(This article is for informational purposes only and does not constitute investment advice. The cryptocurrency market carries significant risks, and investment should be approached with caution.)

Here are some key terms covered in this article:

• Cryptocurrency

• Bitcoin

• Ethereum

• Dogecoin

• Liquidation

• Exchange

• Binance

• Mining

• Halving

• Hash rate

• Regulatory policies

• Technological innovation

• Market demand

• Macroeconomic environment

I hope this article helps you gain a better understanding of the cryptocurrency market.