Reporter | Zou LuhuiEdit|After experiencing a three month bull market, Bitcoin fell below $10000.According to the Coinmarketcap website, on the early morning of September 3rd, Bitcoin plummeted by over 10% in the short term, breaking below the $10000 mark and dropping as low as $9960, breaking a new low since July 27th, with a 24-hour drop of 9
Reporter | Zou Luhui
Edit|
After experiencing a three month bull market, Bitcoin fell below $10000.
According to the Coinmarketcap website, on the early morning of September 3rd, Bitcoin plummeted by over 10% in the short term, breaking below the $10000 mark and dropping as low as $9960, breaking a new low since July 27th, with a 24-hour drop of 9.98%. Currently, it has rebounded to $10302. At the same time, cryptocurrencies have collectively declined, with most of the top ten popular currencies in terms of market value falling by more than 10%, except for stable currencies.
Affected by the decline in cryptocurrency market, Contract Emperor's data this morning showed that the total amount of online exposure in the past 24 hours exceeded 1 billion US dollars, equivalent to approximately 7 billion RMB.
However, due to the special date of Bitcoin's decline and the foreshadowing of the decline in the previous two days, some industry insiders joked that "it may be a good play prepared by the main force to commemorate the 94 incident in advance". It is reported that the Coin Circle 94 incident originated on September 4, 2017, when seven ministries jointly issued the "Announcement on Preventing Financing Risks in Token Issuance", officially suspending ICO (Initial Token Issuance) financing. This day is seen as an important watershed in China's digital currency speculation history.
However, it is not a tradition in the currency industry to fall during festivals. Regarding the decline of Bitcoin this time, there are more views that Defi (Decentralized Finance) mining has drained off off exchange funds, which may be one of the main reasons for this round of decline.
Wu Gang, the founder of Bitcoin Wallet and Coin Trust, publicly stated on social media that the decline in the market was due to the "bloodsucking" of DeFi (decentralized finance) projects, citing the recent 100 fold increase in Sushi projects.
Kang Luzhi, a senior researcher of the Huobi Research Institute, analyzed the interface news and said that the recent hot spot of digital currency is not the Bitcoin market, but the prosperity of the overall digital currency market caused by the gradual prosperity of the decentralized financial market in the Ethereum ecology and wave field ecology.
It can be seen that the trading volume of decentralized exchanges has reached 6% of the trading volume of mainstream exchanges. In addition, the 24-hour trading volume of Uniswap, a decentralized exchange, reached $441 million in early September, surpassing the leading centralized exchange CoinbasePro for the first time.
The characteristic of all decentralized financial projects at present is that they lock in a certain amount of liquidity. "Kang Luzhi explained that short-term liquidity in the market is attracted by popular projects, creating a certain liquidity vacuum, allowing bears to seize opportunities, and the decline caused by this has led the market to choose its direction.
However, there are also views that the main reason for the decline of Bitcoin this time is still due to the market crash by the market makers.
KOL, an analyst known as the trend maniac for digital currencies, pointed out that there has been a large number of smashing orders on exchanges recently. When the currency price is around $11770- $11800, large exchange owners sell at $11750 per unit of 500BTC, and all orders are instantly eaten by brick moving robots, smashing around 4000 coins.
This operation is similar to the situation where Bitcoin was priced around $9400 a month and a half ago, and Bitcoin has seen a significant increase since then. Digital currency trend enthusiasts believe that the two trading styles are similar and may be the same banker.
NewBlocCapital analyst Kang Kang holds a different view. He told Interface News that in recent days, Bitcoin has plummeted, more closely related to other global financial assets. Recently, the US dollar index has shown signs of stopping its decline from a technical perspective. The stop of the US dollar index represents a strengthening of the US dollar. The US dollar index shows a negative correlation with most global risk assets and safe havens such as US stocks, A-shares, gold, and silver, with a drop of over 1% in the gold period the day before yesterday, Driven by the decline of BTC, the Nasdaq rose and fell back yesterday, with a daily decline of nearly 5%, while the linkage between Bitcoin and US stocks is obvious.
As for the future trend of Bitcoin, Kang Luzhi, a senior researcher of Huobi Research Institute, told Interface News that the lack of liquidity in the market has not improved in the short term, so it is still impossible to judge the end of this downward trend. He added that cryptocurrencies are high-risk investments, so be cautious when investing.
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