The Zhitong Finance APP has learned that the largest cryptocurrency, Bitcoin, briefly fell below $27000 for the first time in more than two weeks, and people are concerned that a decrease in the participation of institutional market makers will trigger more severe price fluctuations. On Wednesday, in the US stock market, Bitcoin plummeted by about 5% in just a few minutes; As of the close, Bitcoin fell slightly by 0
The Zhitong Finance APP has learned that the largest cryptocurrency, Bitcoin, briefly fell below $27000 for the first time in more than two weeks, and people are concerned that a decrease in the participation of institutional market makers will trigger more severe price fluctuations. On Wednesday, in the US stock market, Bitcoin plummeted by about 5% in just a few minutes; As of the close, Bitcoin fell slightly by 0.4% to $27535.9. In the past month, Bitcoin has briefly broken through the low end of the range of approximately $27000 to $30000.
Although trading volume surged during the price rebound in the crypto market in the first quarter, careful research has found that after a series of industry scandals, bankruptcies, and regulatory tightening, trading volume was the lowest in several years. This has led to a decrease in trading activity for two of the world's top market making companies, JaneStreetGroup and JumpCrypto. Henry Elder, head of decentralized finance at WaveDigitalAssets, said, "We are currently in a very low liquidity environment. To a large extent, this is caused by market makers exiting the market, as the regulatory landscape in the United States has become so blurred
Insiders have revealed that JaneStreet has scaled back its encryption business ambitions globally as regulatory uncertainty makes it difficult for the company to operate its business in a manner that meets internal standards.
Arca trader Kyle Doane said speculation that the US government is mobilizing a large amount of Bitcoin may have exacerbated Wednesday's decline. This has caused some traders to worry that Bitcoin will be dumped into the market when demand is insufficient.
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