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This week, the U.S. stock market plummeted, and the encryption market also fell sharply immediately. The price of BTC once fell below $9,100, with a single-day maximum drop of nearly 9%.
Summary
Summary
Topic: U.S. stocks plummeted, and the encryption market is also doomed. On June 11, the U.S. stock market plummeted. Affected by this, European stock indexes, crude oil, Hang Seng Index, and Nikkei Index also all fell significantly, and the encryption market could not escape bad luck. Investor panic, the Fed's pessimistic stance, and the fall of the US stock market are the main reasons for the US stock market's slump, and because BTC is at a key pressure level of $10,000, it is easy to be driven by bad news in the market, which also exacerbates the BTC drop.
Market: The token market surged and fell back. The total market value of digital tokens this week was US$275.73 billion, a decrease of US$5.67 billion or about 2% compared to last week; the average daily turnover rate was 28.5%, a decrease of 7.9% from last week. The current price of BTC is 9480.8 US dollars, with a weekly decline of 1.9%, and the average daily trading volume is 24.2 billion US dollars. The current price of ETH is 237.49 US dollars, a weekly decline of 7.8%, and the average daily trading volume is 18.6 billion US dollars. This week, the BTC balance on the exchange was 2.426 million, an increase of 12,694 from last week. The balance of ETH on the exchange was 13.783 million, a decrease of 52,081 from last week. Among the secondary industries of BICS, the proportion of the performance optimization industry has increased significantly.
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Risk warning: regulatory policy risk, market trend risk
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1. The U.S. stock market plummeted, and the encryption market could not escape bad luck
1.1 U.S. stocks plummeted
On June 11, after the opening of the U.S. stock market, the three major indexes all opened lower. Among them, the Dow fell 3.01%, the Nasdaq fell 2.29%, the S&P 500 fell 2.09%, and blockchain concept stocks fell across the board. By the end of the day, the three major stock indexes had recorded their biggest one-day losses since March 12 this year. Among them, the Dow closed down 6.90%, the Nasdaq closed down 5.27%, and the S&P 500 fell 5.89%.
Investor panic and the Fed's pessimistic statement are the main reasons for the sharp drop in US stocks this time.
First, due to racism in the United States, conflicts have been escalating recently. In addition, the number of new confirmed cases of new crowns in some states in the United States has increased in a single day, causing investors to panic.
Second, on June 11, the FOMC Committee of the Federal Reserve announced the latest interest rate decision, keeping the benchmark interest rate unchanged; at the same time, the Federal Reserve predicted that the US economy will shrink by 6.5% in 2020, and the median unemployment rate is expected to be 9.3%. Optimistic market sentiment took a hit.
Previously, the U.S. stock market quickly rose to a high level in a short period of time after experiencing a historically rare market that continuously triggered the circuit breaker mechanism. The short-term release of the risk accumulated by the rapid rise caused panic selling or it was also an important reason for the sharp drop.
At present, the global economic situation is still severe, and the United States is deeply mired in the quagmire of the new crown epidemic and racist contradictions, and the fundamentals are not enough to support the rise of US stocks. Therefore, it is also reasonable for US stocks to plummet before breaking through the previous high.
1.2 U.S. stocks plummeted, BTC suffered
After the U.S. stock market plummeted, European stock indexes fell by about 4%, crude oil fell by nearly 10%, A-shares surged and fell back and adjusted, the Hang Seng Index fell by 2.27%, and the Nikkei Index fell by nearly 3%. Global assets have plunged sharply, and the market Risk aversion suddenly heats up. The encryption market also fell sharply following the U.S. stock market. The price of BTC once fell to $9,100, with the largest single-day drop of nearly 9%. In addition to the impact of the sharp drop in U.S. stocks, the key pressure level is vulnerable to negative influences, which may also be an important reason for the decline in BTC.
After the block reward was halved, the BTC price fluctuated upwards and reached the key position of the $10,000 mark. The key pressure level is driven by bad news in the market, and it is very easy to form a decline. Therefore, under the bad news such as the decline of U.S. stocks, the dive of major global assets, and the rising risk aversion sentiment in the market, the price of BTC has dropped significantly.
1.3 The linkage between the US stock market and the encryption market
In March, the U.S. stock market led to a sharp drop in the world's major investment markets. Investors recovered liquidity out of the need to repay debts, and the encryption market plummeted. This time, the decline in U.S. stocks was mainly due to market panic. Affected by this, the encryption market also fell. It can be seen from this that the two U.S. stock plunges and the encryption market are clearly linked.
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2. Market: The token market soared and fell back
2.1 The overall market: the market rises and falls
This week, the ChaiNext Digital Asset 100 Index closed at 851.92 points, down 2.1%. The ChaiNext Digital Asset 100X Index closed at 2198.41 points, down 2.8%.
The total market value of digital tokens this week was US$275.73 billion, a decrease of US$5.67 billion or about 2% compared to last week.
The average daily trading volume of the digital token market was US$79.96 billion, a decrease of 21.9% from last week, and the average daily turnover rate was 28.5%, a decrease of 7.9% from last week.
This week, the BTC balance on the exchange was 2.426 million, an increase of 12,694 from last week. The balance of ETH on the exchange was 13.783 million, a decrease of 52,081 from last week.
The market value of USDT is 9.22 billion US dollars, and the premium rate of USDT relative to the US dollar has increased.
2.2 Core token: BTC fluctuates upward
The current price of BTC is 9480.8 US dollars, with a weekly decrease of 1.9% and a monthly increase of 2.3%. The average daily turnover is 24.2 billion US dollars, and the average daily turnover rate is 13.6%.
The current price of ETH is 237.49 US dollars, with a weekly decrease of 7.8% and a monthly increase of 2.8%. The average daily turnover is US$18.6 billion, and the average daily turnover rate is 73.7%.
This week, the volatility of mainstream digital tokens has dropped slightly, and the price fluctuations have become flatter than last week. The monthly volatility of BTC decreased by 3.8% from last week; the monthly volatility of ETH decreased by 3.2% from last week.
2.3 BICS industry: The proportion of performance optimization industry has increased significantly
Among the top five BICS (Blockchain Industry Classification Standard, Blockchain Industry Classification Standard) secondary industries by market capitalization, the proportion of the performance optimization industry has increased significantly; the proportion of the market value of the retail e-commerce industry has decreased significantly.
This week, BICS secondary industries with a relatively obvious increase in the number of tokens are media content and token asset management, while non-bank finance and public services have experienced a significant decline.
The market is volatile, and we still need to pay attention to controlling positions. BTC has been halved, and the recent volatile market has provided investors with a more suitable price. It is still a good time to invest in digital assets such as BTC. Long-term currency holders may consider regular investment or bargain hunting.
The market is volatile, and we still need to pay attention to controlling positions. BTC has been halved, and the recent volatile market has provided investors with a more suitable price. It is still a good time to invest in digital assets such as BTC. Long-term currency holders may consider regular investment or bargain hunting.
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3. Output and popularity: BTC and ETH computing power down
This week, according to Google Trends, the search popularity of the term Bitcoin is 11, and the search popularity of Ethereum is 13.
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4. Industry news: DeFi is popular again
4.1 Major banks respond to "freezing cards": Unless money laundering or fraud is involved, legal virtual pass bank cards will not be frozen
According to the China Times, there have been rumors circulating on the Internet recently that Alipay was frozen or prompted to exit the purchase page because of the purchase of encrypted tokens. Customer service replies from China Merchants Bank, Bank of China, Agricultural Bank of China, China Construction Bank, and Industrial and Commercial Bank of China: "As long as the operation is legal, the channel is legal, the source of the virtual token is legal, and the page supports bank card services, the bank card will not actively freeze the user's funds unless it involves Cases related to money laundering and fraud.”
4.2 After the upgrade of Ethereum to version 2.0, miners may switch their mining machines to other networks
According to Cointelegraph, with the upgrade of the Ethereum network to version 2.0 this year, the consensus mechanism will completely switch to the POS model, which will have a huge impact on miners. There are two options for miners, one is to sell mining equipment to buy ETH to adapt to the POS mortgage mechanism; the other is to switch the mining machine to other networks that support GPU mining machines.
Note:
Note:
Due to some reasons, some nouns in this article are not very accurate, mainly such as: general certificate, digital certificate, digital currency, currency, token, crowdsale, etc. If readers have any questions, they can call or write to discuss together.
