Golden Observation｜Cryptocurrency cuts in half and reappears These ideas can’t be missed?

Yesterday, the bloody "slaughter" in the currency circle reappeared. Bitcoin fell from 43,000 US dollars to a minimum of 29,000 US dollars, and Ethereum fell from 3,400 US dollars to a minimum of 1,700 US dollars. The market was in an uproar.

A 519 was added to the "Memorial Day" side by side with 312. Affected by the slump, withdrawals from leading exchanges were restricted, operations faltered, and even Coinbase was down. No one can be spared when the market is plummeting.

Centralized exchanges have been affected, what about decentralized exchanges?

According to the Uniswap transaction volume verification, the transaction volume of V3 soared by more than 40 times yesterday, the currency price fell, and the tokens in the wallet were sold by users in large quantities.

In addition, the rapidly falling price also triggered the liquidation price of over-collateralization such as mortgage lending in DeFi, and also led to the withdrawal of users in DeFi protocols. For example, the lock-up volume of Uniswap dropped by 16%. According to DeBank data, the mainstream DeFi protocol has a liquidation volume of 108 million US dollars within 24 hours.

Golden Morning News | July 19 Overnight Important Updates: 21:00-7:00 Keywords: Stablecoin Subcommittee, DeFi, Ripple

1. The U.S. government postponed the announcement of the exchange reporting information rules.

2. The Japan Encrypted Assets Business Association announced the creation of a stablecoin subcommittee.

3. Zhu Jiaming: DeFi technology has completely destroyed the basic logic of traditional finance.

4. Ripple CTO: Ripple plans to enter the DeFi field.

5. The current total market value of DeFi tokens exceeds US$9 billion.

6. The total value of assets locked in the DeFi ecosystem exceeded $2.6 billion.

7. The active-zce supply of Ethereum in 3-5 years hit a record high of 18 million pieces.

8. Cybersecurity commentator: Use blockchain technology to avoid Twitter hacking.

9. The downtime of CDN service provider Cloudflare in the early hours of yesterday led to a decline in Bitcoin transaction volume. [2020/7/19]

The instantaneous increase of transactions on the chain has significantly boosted the gas fee.

Golden Morning News | Swiss consortium invests in blockchain projects SEC postpones Bitcoin ETF decision: 1. Swiss consortium launches a blockchain incubation project with a plan to invest $100 million

2. SEC postpones VanEck Bitcoin ETF decision to December 29

3. UN Women will use blockchain to transfer cash

4. Russia's major banks want to cooperate with the encryption industry

5. Merrill Lynch joined the Security Token Society

6. Accenture: The semiconductor industry is most likely to integrate with blockchain technology

7. The Brazilian Securities and Exchange Commission proposes six basic ICO preventive measures

8. The stolen cryptocurrency from the Zaif exchange was scattered to thousands of accounts, making it difficult to track

9. The Brazilian Securities and Exchange Commission allows domestic funds to invest in encryption products in foreign markets [2018/9/21]

From 80gwei at noon yesterday, after the plunge, it quickly exceeded 1000gwei, and the limit value exceeded 1500gwei, and it is currently maintained at around 100-300gwei.

Golden Data reports that the global cryptocurrency market value is 1,868.447 billion RMB: According to the Golden Data report, according to AIcoin data, the current global cryptocurrency market value is 1,868.447 billion RMB, of which Bitcoin ranks first with a market value of 709.9 billion RMB, accounting for 38.01% ; Ranked second is Ethereum, with a market value of RMB 311.6 billion, accounting for 16.69%; ranking third is Ripple, with a market value of RMB 137.7 billion, accounting for 7.38%. [2018/6/14]

The price of the currency has been cut in half, and the currency speculation is too miserable.

So why did it plummet so quickly? Because whether it is the main force of the market or retail investors, such a rapid plunge can only be caused by reasons and behaviors, and the reasons and behaviors must have sufficient logical support.

The rapid sell-off at the price of Bitcoin 43000 and Ethereum 3400 may have the following inferences.

Jinse Finance live report Liu Zaiyao, senior product manager of Huawei's blockchain: the overall market space will reach 60.7 billion US dollars in 2024: Jinse Finance live report, at the 2018 Big Data Industry Summit, Liu Zaiyao, senior product manager of Huawei's blockchain, said that the blockchain will In 2024, the overall market space will reach 60.7 billion US dollars, and the current total market size of blockchain products and services exceeds 700 million US dollars. [2018/4/19]

The market turning bearish is the information that investors who participate in the secondary market most want to obtain, because it represents an exit signal. It is also the most reasonable reason for the decline to start. There are three inferences for the market turning bearish:

Recently, the bigwigs have made negative remarks on Bitcoin; Tesla has stopped Bitcoin payments; supervision has been strengthened.

Under such a background, there must be big players or main players preparing to leave the market. What we saw was that yesterday, within 15 minutes, the price of the currency fell rapidly. Regardless of the operation of the market maker, there must be a lot of active-zce urgency. Only when there are more selling orders will there be continuous sales at lower prices. And such a rapid decline will drive other retail investors to start selling, forming a "stampede", that is, panic selling, which has been fully proved from yesterday's trading volume.

Comparing 519 and 312, the trading volume of Bitcoin is not as large as that of 312. The reason is that the price of 312 is very different from that of 519, and because of the sharp drop of Bitcoin and Ethereum, most other tokens Prices are bloodbathed. The most representative is the trading volume performance of uniswap. V2 increased by 1.5 times, with a transaction volume of 1.7 billion US dollars, and V3 increased by 44 times, with a transaction volume of 59.3 billion US dollars. Form stampede and panic at a glance.

If we think about whether this plunge is an inference about the main force's low-level receipts and hoarding chips. Mainly thinking about the previous 3 months, the price of Bitcoin has been oscillating in the large range of 40,000-60,000. For the top of the bull market, it has been oscillating at an absolute high level for 3 months. It is a rare phenomenon, and the condition that needs to be met is that the main force of such an operation ships while protecting the market, and then sells at one time at the end.

At the current time, a more critical price performance is needed, that is, the weekly closing price of this week. Whether the closing price can return to a safe range is the most important thing.

This thinking is combined with the inference of low-order receipt. Bearish sentiment mainly appears before the market is extremely pumped up. A picture that is often circulated in the currency circle is about different market sentiments during the bull market period. The main currencies will have an extreme price performance at the end of the bull market.

Before the main force makes such an action, it will definitely throw off most of the unsteady retail investors. The method of throwing off the car will create everyone's negative sentiment, guide the sell-off, and then quickly pull up. In this way, the pressure of pulling up is relatively small.

From the price point of view, if this week's closing price can return to a reasonable price in the previous inference, then this week's plunge is only a short-term performance, that is, a low-level short trap.

Plunging is common in the currency circle, but yesterday's slump was so large that it was relatively rare. Such a sharp drop has also exceeded the safe range of many contract positions.

According to the contract data, from 12:00 yesterday to 12:00 today, 35.577 billion positions were liquidated on the entire network, and about 475,000 people liquidated their positions. The key point is that the three largest liquidations were a long BTC order worth $20.19 million, a long ADA order worth $45.18 million, and a long BTC order worth $67 million.

The closing prices are $35,634 and $31,021, respectively.

The effect of fixed-point blasting is obvious. Within 24 hours, the positions of BTC and others have dropped significantly. For example, the holdings of BTC, Huobi fell by 38%, OKEx fell by 40%, BitMEX fell by 37%, Binance fell by 44%, and Bybit fell by 43%. Obviously, the long-short ratio of the entire network has also become more balanced, about 48%-49% long orders to 51%-52% short orders.

Calmness after such a plunge is necessary. In the past few months, various types of assets have appeared on the Ethereum chain, which has caused many extreme counter-logic in the cryptocurrency industry. Among them, the bubble has affected market sentiment, and the plunge It happens to cool the market and think clearly.

Regarding the several inferences about yesterday's plunge, investors need to judge by themselves, because since the plunge, there has been no clear indication of market news. In the face of a sharp drop without warning, it is very important to find your own position. If this week's weekly closing price cannot return to a safe price, and the market turns bearish, what the future may bring is that we need to start preparing for the next round. In other words, it is time to prepare for long-term investment.

No matter what kind of trend you are in, the most important thing for investors is the timing of buying and selling. After selling, it is the end of an investment. The saying that book assets are not assets will be fully reflected in the sharp drop.

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