As loud as the crypto market has been over the past few months, today’s decline is bleak.520 The night before, the crypto market once again taught investors a lesson in blood and tears.
At 21:00 this evening, Bitcoin fell below the $30,000 mark, once dipping to 29,000 USDT, according to OKEx. The “cryptocurrency crash” is now ranked ninth on Weibo’s Hot Search.
The downward trend in this round of trading can be traced back a week to May 12, when bitcoin plunged $10,000 from $58,000 and closed below $50,000; in the week since, bitcoin has failed to stand at the $50,000 mark and has fallen downward. This has set the stage for today’s decline.
At 12:00 p.m. today, bitcoin briefly fell below $40,000, hitting a low of 38,600 USDT, and has been oscillating around $40,000 since then; at 18:00 p.m., bitcoin began its rapid descent, with the low moving down and falling below the $30,000 mark at 21:00. Bitcoin fell as low as 29,000 USDT on Firecoin and OKEx, and as low as 30,004 USDT on Coinan; in the past 24 hours, Bitcoin’s maximum drop reached 33%; as of press time, Bitcoin has moved back up to around 37,120 USDT.
Bitcoin’s plunge has also led to a slew of mainstream and cottage coins to the downside. The mainstream coins that were previously moving higher during the bitcoin shakeout have oversold, with ETH falling as low as 1,764 USDT,24 down a maximum of 48%, or as much as 60% from its high.
The rest of the mainstream coins and DeFi tokens are generally down around 50%, more so than last year’s 312 one-day drop, as shown below.
Figure from the Internet
In particular, DOGE, the “Musk concept coin” that has been around for a while, also saw its price cut in this retracement, once falling to $0.21. Many “overseas leeks” immediately “defend” their rights under Musk’s Twitter feed.
The new sectors (DeFi, Layer 2, NFT, meme coin, etc.) that were all the rage in the previous months were also unable to resist the declining trend of the market and plummeted with the mainstream coins.
Chart from the CoinMarketCap DeFi board
Chart from the CoinMarketCap NFT board
In the past 24 hours, the total market capitalization of the crypto market fell from $21,667 billion to $1,538.4 billion, a 29% drop.
The dramatic market volatility has also caused a large number of users to blow up their positions. Coin Coin data shows that in the past 24 hours, a total of 475,000 people have become victims of position explosion, and the total position of the whole network is $5.87 billion; among them, BTC exploded $2.54 billion, ETH exploded $1.48 billion, and the rest of mainstream coin futures generally exploded around $100 million.
CryptoQuant data shows that the long positions of the exchange reached 10,525 BTC in one hour, a record high.
The DeFi protocol also saw a large number of liquidations due to the dramatic volatility of Ether, and according to DeBank data, apart from Venus, the mainstream DeFi protocol saw $265 million liquidation in 24 hours. Among them, Aave V2 liquidation volume was $118 million, Compound liquidation volume was $115 million, Aave V1 liquidation volume was $21.61 million, and the total DeFi lockup volume plummeted instantly. According to Debank, the combined net lock-ups of the mainstream ecosystems have fallen to $60.8 billion.
According to Godfish, if ETH drops another $100 or so, Sun Yuchen’s 600,000-plus ETH will liquidate and explode, further depressing the ETH price to below $1,000.
The huge volume of network transactions has also caused the Ether network to collapse again. According to Tokenview on-chain data monitoring, the number of Ether transactions has increased sharply, and the Ether network is seriously congested, with nearly 20,000 transactions pending confirmation; in addition, the Gas fee has exceeded 1000 Gwei, and the extreme confirmation Gas fee is as high as about 2000 GWei. Cryptocurrency issued an announcement that it will suspend Ether and ERC20 token withdrawal services due to the congestion of the Ether network.
Exchanges faced shocks due to the drastic fluctuations of the market. Among them, the three major trading platforms briefly experienced abnormal UI display and suspension of some functions, while Coinbase was directly down and unable to trade. Reflecting on the performance of the secondary market, Coinbase opened down 12% to $210.28, a record low; blockchain concept stocks generally plummeted, with Kanan shares down 13% to $8.53 for now.
The fall in the market also directly drove USDT prices higher. The current USDT OTC buying price in all three major exchanges has soared to around $6.8 ($6.43 USD exchange rate), with a premium of up to 5.6%.
For this decline, crypto analyst Leo believes there are two main reasons: “First, the market has entered the “boondoggle” phase, and various junk cottage coins such as LOWB and piggy coins have come online and started to draw blood, so the market lacks upward momentum; second, bull market inertia, before each acceleration of the bull market, the market faces a sharp retracement, with a drop of 50%. Historically, today’s pullback signals that bitcoin will hit new highs again in the next (six months).”
The extremes of the market have also presented a polarized mindset among different traders and guided opposite actions: some fell into panic and cut their losses, while others were bullish on the future market and took the opportunity to short or bottom. Regardless of the action or not, new and old leeks in various communities basically noticed the plunge and started a lively discussion, and all kinds of trolls and paragraphs spread rapidly: “No matter how good the operation is, it’s all about winning and losing.
No matter how good the operation is, win or lose all depends on Musk.
What if Hoshino Gen (fiancé of Arakaki, officially announced today) is also speculating on bitcoin?
This morning three departments jointly issued a document regulating virtual currency in and out of gold, I was worried that my money transferred to my bank card would freeze the card. I didn’t expect the problem to be solved in the afternoon, after the loss, no need to withdraw the money.
Fear that you have a good 520, so in advance of the cruel blow to love, the loss of clean.
since contacting the currency circle, the waist does not hurt, the legs are not sore, even the heart does not beat.
Today I heard the most solid sentence of consolation: don’t worry, it will go back up in a few years.
In any case, this fall today also gave the majority of investors a wake up call: the coin market shocks violently, do not use high leverage, spot is the most secure and safe.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/519-frightening-night-the-end-of-the-bull-market/
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