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The panic in the currency market is raging, and the giant whales take advantage of the situation to sweep up the goods



The crypto asset market has suffered a lot. The market value of US$2.2 trillion supported by more than 7,400 currencies has evaporated by US$770 billion in a week. The market value of Bitcoin (BTC), the main support, has also dropped from US$853 billion to US$678.4 billion. The proportion of market capitalization has risen from 37.96% a week ago to 46.2% at present.

BTC once again proved its dominance to the encrypted asset market. When it tilts down, the market value of other encrypted assets will inevitably shrink and shrink even more.

During the market down cycle, news that makes the market tense continues. It now appears that the May 13 news that “Tesla suspended accepting Bitcoin payment plans” was just a prelude. China's financial regulatory authorities have cracked down on virtual currency and Bitcoin mining and trading, which has further aggravated the tense atmosphere in the market.

Some domestic commercial entities involved in Bitcoin mining and trading are coping, and there have been many gossip and rumors during the period. Panic continued to spread and spread during the market decline, which further caused capital flight and the market fell. When the market crashed, Bitcoin whales began to enter the market to sweep goods.

Although Bitcoin rebounded from $31,000 at night yesterday (May 23, Beijing time) to more than $36,000 today, it was obviously not strong enough, that is, it failed to recover to the high of $43,000 when it fell sharply on the 19th, nor did it return to EMA200 (Moving Exponential Average) above $41,000. This indicator is the key for many market analysts to judge the market bull and bear indicators.

Data: The market value of Bitcoin has reached 10% of the market value of gold: According to news on February 22, the market value of Bitcoin has reached 10% of the market value of gold. According to statistics, the total market value of all mined gold is between US$10 trillion and US$11 trillion between. The cryptocurrency's price rise pushed its value past $57,000, bringing the total market capitalization to about $1.1 trillion, according to Coinbase data. (The Block)[2021/2/22 17:37:58]

After May 21, BTC with a prefix of 4 never appeared again. This means that BTC is less than double the increase from the peak of the previous round of bull market at $2,000, and has fallen by 43.75% from the peak of $64,000 in this round of bull market. On the 19th, the decline once expanded to 54.6%.

After Bitcoin failed to reach $40,000 several times within 3 days, the pessimism in the market became more and more intense. On Weibo, the KOL who continued to sing about the bull market during the rebound was also ridiculed by fans as a "slap in the face". Among the market investors, some said that they had already cleared their positions and left the market, while others thought that "it seems meaningless to clear their positions" after losing 80%.

The decline of Bitcoin directly led to the evaporation of 770 billion US dollars in the encrypted asset market within a week. Except for the third-ranked US dollar stablecoin USDT, which itself does not fluctuate too much, the market value of Bitcoin has shrunk by 20%; the second-ranked Ethereum ( ETH) evaporated by 34.5%; ADA surpassed BNB to rank fourth, but its market value also shrank by 33.8%; BNB’s market value fell by 45%.

Data: The total profit of Apple's share price rise exceeds the market value of Bitcoin: August 1 news, Google data shows that in this Friday's trading session, Apple's stock price rose by 11%, and Apple's total market value increased by 200 billion US dollars, a high on Bitcoin market value. Analysts believe that although Bitcoin has attracted the attention of the mainstream financial market, and top investment bank JPMorgan Chase is also providing services to cryptocurrency companies, from a macro perspective, the encryption market is still an emerging market, and Bitcoin still has a great potential in the future. room to grow. (CryptoSlate)[2020/8/2]

The concept increase list of the data platform Feixiaohao shows that in the last 7 days, the platform currency sector with a total of 46 types of assets included has fallen sharply, with a drop of 29% within 7 days; the 12 DeFi derivatives sectors included, the weekly The internal drop was 32.7%; the PoS concept board fell by more than 33%.

The rebound of the encrypted asset market was weak, and when the decline expanded, investors' panic continued to intensify. As the "weather vane" of the encrypted asset market, Bitcoin's market panic/greed index tends to reflect the sentiment of the entire market. Alternative data shows that on May 24, the panic/greed index was 10, indicating extreme panic. A month ago, it was 37, which was panic level.

News | The digital currency market continues to consolidate, and the 24-hour contract market liquidation exceeds 34.55 million US dollars: According to the contract market statistics report: the total contract market in the past 24 hours has been liquidated at 34.55 million US dollars, and the number of liquidations is 2412. Among them, Huobi lost $1.6 million, OKEx lost $12.19 million, Binance lost $13.45 million, and BitMEX lost $7.32 million. The top three currencies with the liquidation amount are BTC 27.8 million US dollars, ETH 1.54 million US dollars, and ETC 1.23 million US dollars. [2020/2/11]

BTC panic/greed index is 10 (extreme panic)

Bitcoin's Panic/Greed Index is an index of market sentiment based on daily analysis of different data. The data used to calculate the index includes data such as currency prices, trading volume, social media, the proportion of Bitcoin market value (the higher the proportion of BTC, it means that investors buy BTC to avoid risks, and the market is more panicked), Internet search-zce trends and other data. Between panic and greed, a lower index means more panic in the market, and a higher index means the market is closer to greed.

Quotes | The 24-hour trading volume of the cryptocurrency market is about 74.668 billion US dollars: According to CoinMarketCap data, the 24-hour trading volume of the cryptocurrency market is about 74.668 billion US dollars. The top five turnover rankings are as follows: the first is USDT, whose 24-hour turnover is 25.495 billion U.S. dollars, accounting for 34.14%; the second is BTC, whose 24-hour turnover is 22.620 billion U.S. dollars, accounting for 30.29%; The third is ETH, whose 24-hour turnover is $8.282 billion, accounting for 11.09%; the fourth is LTC, whose 24-hour turnover is $3.437 billion, accounting for 4.60%; the fifth is BCH, whose 24-hour turnover The amount was 2.320 billion US dollars, accounting for 3.11%. [2019/11/3]

Today's "10" means that the degree of panic in the market is approaching an extreme value. Some Weibo KOLs have no choice but to ridicule, "If you panic again, it will reach 0, and the scale will explode."

In addition to the main reason for the continued price decline, this round of market panic is also stimulated by news.

People probably won’t forget Tesla’s announcement on the 13th of this month that it “suspended the acceptance of bitcoin payment plan”. The price of 57,000 US dollars fell sharply by 14%, falling below the "5 prefix".

Voice | Li Xiaolai: The blockchain will not be unusable due to the price drop in the currency market: Li Xiaolai just posted on Weibo: "Bitcoin has been killed countless times in the past ten years. The difference in this bear market is that it will never No one claims that Bitcoin is dead. What about the blockchain? Blockchain technology, another name is a distributed, open and non-tamperable database technology. The largest application scenario is in public affairs." [2018/11/9]

When the market was speculating on whether Tesla, which bought Bitcoin for $1.5 billion, would sell it, the prelude to panic had just sounded. Glassnode data monitoring shows that coins on small BTC addresses are being transferred to exchanges, which means that a large number of retail investors are selling their assets.

Immediately afterwards, regulatory news spread from China. On May 18, the China Internet Finance Association, China Banking Association, and China Payment and Clearing Association jointly issued an announcement to remind the public to "prevent the risk of virtual currency transaction speculation." These three associations are regarded by the market as a signal of strict supervision by the financial management department.

The announcement once again emphasized the virtual commodity attributes of virtual currencies, which do not have monetary attributes such as legal compensation and mandatory; at the same time, "swords" payment companies, banks and insurance companies are not allowed to carry out legal currency and virtual currency-related businesses, and remind violations Carry out criminal activities that will be suspected of illegal fundraising, illegal issuance of securities, and illegal sale of token tickets.

Some in the blockchain and crypto-asset industry see this as a signal of tighter regulation of fiat money entering and exiting the crypto-asset market. The next day, on May 19, BTC fell to $29,000, which became the crisis moment with the largest decline in this round of bull market.

If the joint statement of the three associations is just a signal, then the fifth meeting of the State Financial Stability and Development Committee on May 21 has become more clear in terms of regulatory level and direction. In the meeting's requirements of "resolutely preventing and controlling financial risks", it was clearly proposed to "crack down on Bitcoin mining and trading behaviors, and resolutely prevent the transfer of individual risks to the social field."

Bitcoin has become a key word, and both mining and trading activities are under attack. Relevant persons interviewed by "Securities Daily" believe that Bitcoin's impact on carbon neutrality, capital outflow channels, and illegal financing using Token (encrypted digital currency) has caused a heavy blow from supervision.

After the same regulatory voice, BTC ushered in another decline. From around $40,000 after the rebound, it fell below the $36,000 and $32,000 mark for two consecutive days.

Some rumors also took advantage of the panic. All three HBO platforms were rumored to close the OTC channel of mainstream assets, and each had to take turns to refute the rumors. As of May 24, the OTC channels of the three trading platforms are normal.

However, data monitoring on the Tokenview chain shows that in the past 5 days, the bitcoin in the centralized exchange has shown a significant outflow. Among them, Huobi has the largest outflow of bitcoin, and the daily inflow and outflow ratio has changed from 37:63 to 13:87; while the bitcoin flow of Binance Exchange is in a reverse state, and the daily inflow and outflow ratio has changed from 45 on May 19: 55 becomes yesterday's 54:46, and the inflow is now greater than the outflow. Overall, the outflow of Bitcoin from centralized exchanges yesterday increased by 52.2% compared to the day before.

Some companies involved in bitcoin mining operations have been quicker to respond than transactions. The customer service news from Huobi Mall said, "In order to cooperate with China's latest industry regulatory policies, the mall has decided to suspend the provision of mining machines and derivative services for users in mainland China. For purchased BTC mining machine products (including "mining machine + hosting" , "One-stop", "Worry-Free Mining" users will suspend the provision of mining machine hosting services, and the machines will be removed from the shelves starting from the 23rd.”

A relevant person from Huobi said, “Since the beginning of this year, the pace of globalization of the mining machine mall business has been accelerating. In order to concentrate on expanding overseas business, the mining machine mall has decided to suspend the provision of related services for users in mainland China. Mining machine malls held by old users The solution to the machine will then be notified to the customer.”

The performance of mining pools in the mining industry is stable, and Bitcoin computing power is still concentrated in mining pools with Chinese entrepreneur backgrounds such as Antpool, Fish Pond, Biyin, and ViaBTC. According to data from OKLink, these four mining pools accounted for 59.51% of the entire network’s explosive blocks.

The panic caused by the decline and regulatory news has caused the currency market to suffer a half-cut crash. At this time, overseas investment institutions are sweeping goods. A member of Morgan Glass Digital disclosed that he analyzed Glassnode data and found that since the market crash last Wednesday, Bitcoin whales holding 10,000 to 100,000 BTC have purchased a total of 122,588 BTC.

According to Bloomberg News, some funds did participate in the purchase in this round of decline. They are actually bargain hunters, including London-based MVPQ Capital and ByteTree Asset Management and Singapore's Three Arrows Capital (Three Arrows Capital). Kyle Davies, co-founder of Three Arrows Capital, said, "Every time we see a large amount of liquidation is an opportunity to buy, I would not be surprised if Bitcoin and Ethereum can retrace the entire decline within a week."

Chinese investors in the crypto asset market still seem to be waiting for more enforcement news from the regulator. In their view, before the sword of Damocles falls, the haze will continue to hang over their hearts.


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