Editor's Note: This article comes fromBlock beats BlockBeats (ID: BlockBeats), reprinted by Odaily with authorization.
Editor's Note: This article comes from
Block beats BlockBeats (ID: BlockBeats)
Block beats BlockBeats (ID: BlockBeats)
, reprinted by Odaily with authorization.
Looking at the global macro assets, the plunge of Bitcoin is not alone. As of 9 a.m. on March 13, the price of bitcoin plummeted by 42%, with the lowest price quoted at $4,599, and 426 billion yuan was evaporated within 24 hours.
During this process, the panic in the global stock market has intensified. The three major European stock indexes and the Asia-Pacific stock market have all retreated to varying degrees. At least 10 stock indexes have experienced circuit breakers, suspended trading, and entered a technical bear market. Driven by the external market, the original upward trend of A shares was affected. As of yesterday's close, the Shanghai Composite Index retreated 3.66%.
Misfortunes never come singly, and the commodity market has experienced a more serious bloodbath. Affected by the expected failure of the OPEC production reduction agreement and the changes in the supply and demand pattern caused by the economic environment, after the U.S. crude oil index plummeted by more than 8% on March 6, it once again experienced a historically rare plunge on March 7, with a drop of more than 30%.
As can be seen from the above figure, the sentiment index of the entire global capital market has reached 2, which is an extreme value in extreme panic. We can also find the same answer from the continuous skyrocketing VIX index.
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The market plunged fiercely, and traders broke their positions: Platinum turned into bronze
"It's too brutal", "Exploded", "Full buried", "The screenshots can't keep up with the falling speed".
Starting at 6:30 pm on March 12, the cryptocurrency led by Bitcoin suddenly began to plunge, and everyone was caught off guard. The quotes of the market software are constantly flashing, and the price of Bitcoin has successively dropped to $6,800, $6,500, $6,000, $5,000, and $4,500, smashing everyone’s luck along the way, and some platforms even fell to the wonderful figure of $4,350 , It also hit a new low in the price of Bitcoin since mid-March last year.
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Image source: Kucoin
The market has changed too violently. For a while, the players in the market who had no time to close their positions were in mourning. Quite a few investors, in just half an hour, have been blasted for tens of thousands of yuan, millions, or even tens of millions. Someone laughed at himself in the VIP Club (platinum group) of a certain trading platform: According to In the case of most people, it is possible that the group name will be changed from the platinum group to the "bronze group"; even more people who lost money said that they all said that the halving market will rise sharply, but they did not expect that the price will be halved, and the numbers in the account will be changed. Finished.
According to Coin data, in just 24 hours, more than 100,000 people suffered liquidation on the entire network. The largest single liquidation occurred in Huobi. billion U.S. dollars, or about 20.5 billion yuan. What is the concept of the figure of 20.5 billion yuan? In the NEEQ market in 2019, March had the highest monthly turnover in the whole year, and the transaction volume was just 8.47 billion yuan. The real so-called currency circle is 1 hour, and the NEEQ is one month.
The rapidly falling market caused panic among all investors. Just when many people started to stop losses and close positions, at this time, many trading platforms unexpectedly experienced downtime or maintenance, and the affected scope covered spot and contracts. Even Over-the-counter transactions are also deeply affected. For example, under extreme market conditions, the Binance trading platform suspended withdrawals, and some Huobi users reported that the OTC platform displayed a "server error" and could not conduct OTC transactions, and the repair was completed after a few hours.
Coincidentally, the trading platform here went down, and the Bitcoin network on the other side also began to behave strangely. As the price of Bitcoin plummeted below $5,000, most of the mining machines on the market have reached the shutdown price, including: Whatsminer M3, Avalon A741, Ebit E9+, Antminer T9+, Avalon A821 / A9, Innosilicon T2, and the mainstream Antminer S9 on the market. It loses money when it is turned on, and some communities have reported that because the network has not produced blocks for a long time, some miners have no choice but to shut down.
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The interval between two blocks is 1 hour, image source: OKLink
On the one hand, investors who suffered liquidation were crying, and on the other hand, a small number of people who left the market early were thankful. After the plunge, investor Liu Qing broke out in a cold sweat. He told BlockBeats, "Now that I think about it I was scared after thinking about it, I just cleared my warehouse a few days ago, and today I was going to buy the bottom at 6,800 US dollars, but I was busy and forgot, so I escaped unharmed, it was too thrilling.”
According to oklink.com statistics, BTC, LTC, BCH, and BSV did not experience large-value transfer congestion during the same period, and the number of BTC transfers only increased by 4.46% in 24 hours. At the same time, another blockchain, Ethereum, also experienced serious congestion problems. Users not only need to pay dozens of times the handling fee to submit a transaction, but also need to wait more than ten minutes to complete a transaction. Jiang Zilong, head of OKLink's business, believes that according to the data on the chain, due to price fluctuations, decentralized lending users' replenishment or other actions are an important reason for ETH congestion.
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Will the Bitcoin with the highest volatility be thrown away first by investors?
In view of this Bitcoin's biggest waterfall in 6 years, coupled with the historical decline of external markets including global stock markets, commodities and other investment products, many people still can't believe their eyes. How do the leaders of the encryption industry view this disaster?
William, the chief researcher of OKEx Research, expressed his opinion. First of all, he believes that Bitcoin is not a safe-haven asset. To measure whether an asset is a safe-haven asset, you should look at the volatility. Obviously, the volatility of Bitcoin is the highest in the world and must not be a safe-haven asset. safe-haven assets. But now, under the impact of the black swan of the epidemic, the panic in the capital market has intensified, investors have begun to regard cash as king, and market liquidity has begun to be extremely scarce. Funds from high-risk assets such as Bitcoin will be withdrawn from it in search of safer, more liquid assets.
Ben Zhou, CEO of Bybit, a cryptocurrency trading platform, also agrees with the view that the epidemic has affected the market. He believes that investor sentiment is sluggish. Under the huge selling pressure of global risk assets, the liquidity tightening reaction of the small Bitcoin is more serious. And there is obvious panic selling.
Yang Mindao, the founder of dForce, a decentralized lending platform on Ethereum, looked at the sharp drop from the perspective of the platform. He said that this extreme market has a great impact on centralized high leverage like BitMEX. are in maintenance mode.
Similarly, Sandro Gorduladze, the chief researcher of Hash CIB, said after the plunge, “For retail investors, don’t enter the market before everything is settled. Don’t try to buy bottoms in this situation, it’s too dangerous.”
