The “crusher” reappeared, Bitcoin “shrank” by nearly half compared to its highest point, and nearly 7.3 billion yuan of funds burst
After days of turbulence, cryptocurrencies led by Bitcoin ushered in a new round of diving. On June 8, data from the global currency price website CoinGecko showed that the cryptocurrency market was booming, and Bitcoin once fell to the $32,000 mark.
Bitcoin liquidation in the past 24 hours
A reporter from Beijing Business Daily found that cryptocurrencies have experienced a wave of turbulence since they suffered a full-scale bloodbath on May 19th. Since June, Bitcoin has shown a downward trend in volatility as a whole. At 4:30 in the morning on June 8, Bitcoin fell sharply in a short-term, from 35560.18 US dollars to 34251.60 US dollars within half an hour. In the next 5 hours, the price of Bitcoin fluctuated around 34,000 U.S. dollars, until 10:30 “diving” again.
According to CoinGecko data, after hitting the lowest price of $32,586.84 in 24 hours at 15:10 on June 8, the price of Bitcoin rebounded and the decline narrowed. In 24 hours, the highest price of Bitcoin was 36833.56 US dollars. As of 18:20 on June 8, Bitcoin reported $33,181.51, a 24-hour drop of 8.8%. Compared to its historical high of $64,804.72, it fell by 48.7%.
From October 2020 to March 2021, Bitcoin continued to rise month by month, breaking through multiple ten-thousand-yuan thresholds, until it reached the highest record in April 2021, but in the same month, Bitcoin also increased. It ended the six-month continuous rise, and closed down slightly at the end of the month. Subsequently, Bitcoin plummeted 35.5% in May, and continued its downward trend in June. The gains in February and March 2021 have all been spit back.
In addition to Bitcoin, other cryptocurrencies also fell. Among the top 30 cryptocurrencies by market capitalization, only TEDA (USDT
) Other currencies fluctuate slightly, and the remaining currencies mostly fall at around 10%. For example, as of 18:20 on June 8, Ethereum, the second largest in market capitalization, reported $2535.8, an intraday drop of 10.2%; Dogecoin reported $0.33, an intraday drop of 11.6%.
Under the slump, the contract market on the whole network also accelerated its liquidation. According to data from Bitcoin Homes, 166,600 people broke their positions within 24 hours, and 1.139 billion US dollars of funds were liquidated, or about 7.295 billion yuan. Among them, 6.477 billion yuan came from longs.
Financial technology expert Su Xiaorui believes that, judging from the recent trends of Bitcoin and other currencies, with institutional investors withdrawing and overregulation, the enthusiasm of the cryptocurrency market is gradually cooling down, which will inevitably lead to a fall in the price of Bitcoin. The price of cryptocurrency is also affected by news factors. At present, attention to cryptocurrency and related activities at home and abroad still exists. In the future, the price of bitcoin and other currencies is likely to continue to fluctuate sharply, and large rises and falls may become the norm.
As Su Xiaorui said, the market generally believes that this round of Bitcoin’s plunge is still caused by news. Since June, overseas news about Bitcoin has appeared frequently. Musk, who has repeatedly called for orders, has been accused of manipulating the cryptocurrency market and threatened by international hacker organizations; former US President Trump mentioned the relationship between Bitcoin and the U.S. dollar in an interview. The relationship between them, bluntly, Bitcoin looks like a scam, essentially a currency against the U.S. dollar.
More importantly, the Colonel Pipeline Transport Company, the largest oil product pipeline operator in the United States, which has attracted widespread attention in May, was blackmailed and demanded to be paid in Bitcoin. On June 7, the U.S. Justice Department announced that it had successfully recovered 63.7 bitcoins, valued at approximately US$2.3 million. Lisa Monaco, the Deputy Attorney General, stated at the press conference that it would continue to use all tools and resources to investigate and support The entire ecosystem of blackmail and digital blackmail attacks, including crimes using digital currencies.
However, it is worth mentioning that for Bitcoin, which does not have the property of currency circulation, technical support is a major selling point. Bitcoin, which has a high degree of anonymity and decentralization, can be recovered after payment, which also makes the currency circle question the security of Bitcoin transactions.
This is also considered to be the main reason for Bitcoin’s new round of crash. Su Xiaorui pointed out that the rise in the price of cryptocurrencies such as Bitcoin is mainly due to the consensus mechanism, and the problems such as weak underlying credit generated under the consensus mechanism cannot be solved. Most players regard participating in cryptocurrency investment as a highly speculative behavior, and doubts about the security of Bitcoin itself can easily lead to a crash.
“However, the incident of recovering Bitcoin in the United States has once again emphasized the attitude of the regulatory authorities to cryptocurrency crimes, and also shows that there are technical control measures for such crimes. Subsequent money laundering in the cryptocurrency field will definitely be more severe. For strict monitoring and governance.” Su Xiaorui said.
In fact, a reporter from Beijing Business Daily noticed that the regulation of cryptocurrencies in various countries is also continuing to advance. In addition to the continuous crackdown on cryptocurrency transactions and mining and other related activities in China, overseas supervision of cryptocurrencies is also showing a tightening trend. Su Xiaorui emphasized that the current value of cryptocurrencies such as Bitcoin is not recognized by most national regulatory agencies, and some niche altcoins with unknown sources are even more risky. Domestic investors must fully understand the nature and risks of cryptocurrencies and cannot blindly participate Any form of trading and hype activities.
Author/ Translator: Jamie Kim
Bio: Jamie Kim is a technology journalist. Raised in Hong Kong and always vocal at heart. She aims to share her expertise with the readers at blockreview.net. Kim is a Bitcoin maximalist who believes with unwavering conviction that Bitcoin is the only cryptocurrency – in fact, currency – worth caring about.