After experiencing events such as the listing of Coinbase and the skyrocketing price of Dogecoin, the market finally began to decline. On April 18, the overall market fell, and it did not fall back until today.
It is worth mentioning that when Bitcoin was about to hit 65,000 US dollars, it fell all the way to the lowest point of 51,000 US dollars, and its current market share has only reached 49.24%.
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Image source: Bybt
First, let's take a look at the situation on April 18. According to Bybt data, the liquidation amount on April 18 was as high as 9.795 billion U.S. dollars, and the number of people exceeded one million, making it the largest liquidation day in history.
In this context, let us look at the market situation. Before the sharp drop, there was no explosive news that is not conducive to cryptocurrencies, and this wave of prices appeared only because people's FOMO sentiment was too serious.
Everyone knows that before the listing of Coinbase on April 14, the number of digital currencies began to skyrocket and reached the peak, so people invested all their funds, especially under the blessing of high leverage, but most people ignored one point. It may be due to the improvement of supervision and the recognition of cryptocurrencies. It is normal to return to stability after listing, but some people just want to try with high leverage, so a plunge is inevitable. I also said this in the last live broadcast .
Image credit: CoinGecko
Image credit: CoinGecko
Let us recall carefully, which previous round of bull market lasted more than half a year, most of which turned from bulls to bears when people excessively turned digital currency into a hype tool. The spot and long-term investment markets have not had much impact.
In contrast to Ethereum, the pledged amount of ETH 2.0 has exceeded 3.86 million, and will soon reach the 4 million mark. Under this sharp drop, although there was a short-term decline, it quickly rebounded to around $2,200 , The reason is that Ethereum has a large number of application ecosystems. Although Gas is high, it has become a necessity for people, and its current share has reached 12%.
This year, BNB, which has an ecological rise, has attracted many users with its low gas fee and many high-quality ecology, and it also occupies a 3.8% market share.
Image credit: CoinGecko
Image credit: CoinGecko
As for the market outlook, my personal prediction is that there will be a part of the callback cycle as a whole, but the digital currencies of some high-quality projects will continue to be strong, and continue to move forward with the increase in the application scenarios of the projects themselves, but some are already following hot spots. And projects that issue coins quickly are likely to be in a "half-dead" state.
The high-quality projects I have been advocating are being highlighted in the process of promoting the development of the blockchain industry, and gradually paving the way for the implementation of larger scenarios in the later period.
In terms of regulation, on April 6, Fidelity, Square and Coinbase have jointly launched the Bitcoin Industry Association "The Crypto Council for Innovation", which aims to address the regulation of Bitcoin and other cryptocurrencies. On April 18th, Li Bo, deputy governor of the central bank, said at the Boao Forum that he is studying the regulatory rules for Bitcoin and stablecoins. If any stablecoin wants to become a widely used payment tool in the future, it must be subject to strict supervision, just like Banks or quasi-banking financial institutions are also heavily regulated.
Regulation is not necessarily a bad thing, it shows the recognition of cryptocurrency and the difficulty of issuing currency in the future, which is equivalent to an ultimatum for some air coins, which is conducive to promoting the positive cycle of cryptocurrency development, not just speculation.
YFI founder Andre Cronje also wrote today that this market rewards scammers and imitators. In this market, it makes no sense to release a product without tokens, for example, it cannot attract funds, it cannot build a community of contributors, and the product cannot stand on its own. In addition, the anonymous team will also be within 24 hours. fork and issue tokens.
High-quality projects with concepts such as DeFi, NFT, DID, and DAO also need such performance to highlight their value, rather than determining their market users by the price of the currency.
