“519 plunge review”: farewell to the night of panic, the bull market is to go or stay?

After last night’s “519”, there will be no more “312” legend in the circle.

On the eve of 520, the crypto market suffered an unprecedented bloodbath, with almost all mainstream coins, including Bitcoin and Ether, experiencing a roller-coaster market.

Last year’s “312” brought panic to the market and is often mocked by people in the circle, but after last night’s “519”, there will be no more “312” legends in the circle.

Mainstream coins take a big dive, bitcoin falls below $30,000
The actual data of a futures player on Weibo shows that it took a year and a half to earn 120 million, but last night it exploded to zero.

At 21:00 on the evening of May 19, Bitcoin took the lead in falling through the $30,000 mark, once dipping to $29,000, while Ether fell below $2,000, down to as low as near $1,600, with a maximum drop of 48% in 24 hours, down as much as 60% from its high point.

At the same time, at around 21:20, Ethergas fees rose rapidly, with extreme confirmation of gas fees up to around 2,000 GWei. Bitcoin’s plunge directly led to a series of mainstream coins and cottage coins waterfall down, and dogcoin, which Musk shouted at some time ago, fell by 50% in 24 hours.

In front of the big crash, no coin could escape. The previous big fire DeFi, Layer 2, NFT and various animal coins all fell by more than 50%. Afterwards, “cryptocurrency crash” was once the third most popular search on Weibo, and the ranking has dropped to the eighth as of this writing.

"519 plunge review": farewell to the night of panic, the bull market is to go or stay?

As of press time CoinMarketCap DeFi board

"519 plunge review": farewell to the night of panic, the bull market is to go or stay?

As of press time CoinMarketCap NFT board

519 Fright Night directly evaporated cryptocurrency market cap by nearly 2 trillion yuan, shrinking the total market cap to 11.62 trillion yuan. hundreds of thousands of people have burst their positions across the network since May 12, and more than 50 billion funds have gone up in smoke.

According to the latest bybt data, in the last 24 hours, a total of about 775,700 people have become victims of a blowout, the largest single blowout occurred in Huobi-BTC, worth up to $67,001,000.

CryptoQuant data shows that the exchange’s one-hour long liquidation reached 10,525 BTC, a record high.

According to DeBank data, the total lock position of DeFi across the network has dropped nearly $50 billion from the peak of $131.98 billion on May 11, down 37%, and the total lock position of DeFi across the network is about $74.826 billion as of press time.

Due to the drastic price fluctuations of ETH, DeFi protocols also saw a large number of liquidations. According to DeBank data, in addition to Venus, mainstream DeFi protocols saw $265 million liquidations within 24 hours. Among them, Aave V2 liquidation volume was $118 million, Compound liquidation volume was $115 million, and Aave V1 liquidation volume was $21.61 million .

The GAS fee skyrocketed, and the extreme mode Gas fee exceeded 2000 GWEI, and once there were nearly 20,000 transactions in the pending confirmation. Microblogger V Qiu Xiangyu said, “The day ETH2.0 is not up, the DeFi building is unstable.”

Philippe Castonguay tweeted that there was about 2 minutes for lending platform LiquityProtocol to liquidate Sun Yuchen’s 606,000 Ether, but then Sun Yuchen repaid $300 million making the liquidation not happen.

Godfish commented on this, “If eth falls 100 more, tonight is estimated to see within 1000 knives”. Sun Yuchen then released his own microblog saying: the funds are safe, but there was indeed a moment when the bullet passed by my scalp, making me cold sweat, I did not expect the pin to come so fierce, thanks to Godfish and other reminders to tighten the operation (fill positions).

Jiang Zhuoer pointed out that the nature of DeFi is unregulated, completely free finance, a variety of ecological layers of nesting, crazy high leverage countless, so the leverage trampling 312 is bound to happen again and again, repeatedly. The shocking scene also made the industry need to reflect on the huge risks embedded in DeFi.

In addition, technology stocks were also hit. U.S. stocks opened on the evening of May 19 Beijing time, the blockchain sector fell hard across the board, with Marathon Patent down 15%, Riot Blockchain down 17%, Bit Mining down 20%, Coinbase down more than 12% to a new low on the market, and Tesla down more than 5%.

“Institutional investors appear to be dumping bitcoin for traditional gold as they see the end of bitcoin’s first two quarterly uptrends and therefore seek the stability of traditional gold.” JPMorgan said. Spot gold stood at $1,880 an ounce on the day, a new high since Jan. 8.

Black market sees lag and downtime on mainstream exchanges again

With cryptocurrency prices such as Bitcoin falling across the board, mainstream exchanges around the world experienced varying degrees of downtime, with trading platform pages such as Coinbase, Hotcoin, Coinan and Euromoney OKEx temporarily unable to log in that night.

In a statement, Coinbase said, “We have identified a number of issues with Coinbase and Coinbase Pro, and some features may not be fully functional. We are currently investigating these issues and will provide an update as soon as possible.”

Some users have been complaining on Twitter about the Coinbase website and app being down, as they are currently trying to take the opportunity to buy at a time when digital cryptocurrency prices are plummeting. As a result, Coinbase shares fell 10% at one point in early trading today.

Coinbase issued a notice saying that it has suspended trading of all leveraged tokens except BTCUP, BTCDOWN, ETHUP, ETHDOWN, BNBUP, and BNBDOWN, and suspended the subscription and redemption functions of all leveraged tokens. Trading, subscription and redemption will be resumed at a later date.

"519 plunge review": farewell to the night of panic, the bull market is to go or stay?

The huge volume of network transactions has crashed the Ethernet network again. According to Tokenview on-chain data monitoring, the number of Ether transaction strokes increased dramatically and the Ether network was seriously congested.

At around 21:00 on the evening of the 19th, with nearly 20,000 transactions pending confirmation, Coinan issued an announcement that it would suspend Ether and ERC20 token withdrawal services due to the congestion of the Ether network.

It resumed about an hour and a half later. Subsequently, Kraken also reported a connection failure on the trading platform. 10:45 a.m., the official website of Firecoin announced that ERC20 token withdrawal was suspended.

The fall in the market also directly drove the price of USDT higher. Last night the OTC buying price of USDT on all three major exchanges shot up to around $6.80 ($6.43 USD exchange rate), a premium of 5.6%.

Is the Bull Gone?
Bitcoin and other cryptocurrencies have been on the downtrend recently, partly because of regulatory factors and partly because of the market.

On May 18, the “Announcement on Preventing the Risk of Speculation in Virtual Currency Trading” (hereinafter referred to as the “Announcement”) was jointly issued by the Internet Finance Association of China and other three associations.

The Announcement bluntly stated that virtual currencies have no real value support, the price is extremely easy to be manipulated, and there are multiple risks such as risk of false assets, risk of business failure and risk of investment speculation in related speculative trading activities.

At the same time, it is suggested that the majority of consumers should enhance risk awareness, establish the correct investment concept, do not participate in virtual currency trading speculation activities, beware of personal property and rights and interests are damaged. It is important to note that the Notice is essentially an industry self-regulatory rule, not a law or regulation, not even a departmental regulation.

It is not legally enforceable, and most of the content of the announcement is just to reiterate and prompt, there is no substantive decision-making content, the impact of the announcement on virtual currency trading activities remains to be seen.

On the same day, the Resource Conservation and Environmental Protection Division of the Inner Mongolia Development and Reform Commission issued a notice on the acceptance of letters and visits from virtual currency mining enterprises, pointing out that the Office of the Regional Energy Consumption Double Control Emergency Command has set up a reporting platform for virtual currency “mining” enterprises to comprehensively clean up and shut down virtual currency “mining” projects. “project.

However, the announcement is not the only negative factor in the recent market. Last week, Tesla CEO Elon Musk made the cryptocurrency world turbulent by relying on a few Twitter comments.

In response, the 21st Century Business Herald tweeted, “The fall of various coins is mainly due to Musk, who previously sold out to shout orders, showing an ambiguous attitude towards virtual currencies and dominating the short sentiment in the cryptocurrency circle.”

Musk hinted on Twitter on May 17 that Tesla may have all but sold or partially sold its bitcoin position. The news came as the price of bitcoin fell to $45,000 for the first time in three months, with other coins falling sharply in response and market sentiment in the red.

Musk then commented to clarify that Tesla had not sold any bitcoin, and bitcoin briefly rallied over 2,000 points, but this did not save the sluggish market.

On the 12th, Tesla announced that it would stop using bitcoin to purchase cars, and cryptocurrency concept stocks also sank after the bell, with Coinbase Global falling more than 1% after the bell. Bitcoin dived about $1,970, and Dogcoin extended its intra-day decline to more than 12%.

This heavy drop in the crypto market has many users lamenting that the bulls are gone and the bears are here. But is that really the case? Matt Hougan, chief investment officer at Bitwise Asset Management, said the pullback we saw today was driven by panic selling and forced deleveraging, which came mostly from retail investors in overseas markets.

News of Tesla dropping acceptance of bitcoin, China reaffirming its anti-crypto stance and the Office of the Comptroller of the Currency’s (OCC) decision to review regulatory guidelines for digital assets sparked panic, but did not “fundamentally change the long-term trend of bitcoin.

He believes that after the deleveraging itself runs out, it will move to a stronger base. That’s the other side of the market, which is still up more than 300% over the past year, even after today’s pullback.

Crypto analyst Leo sees this as bull market inertia, as the market has faced sharp pullbacks before each of the bull market’s accelerating rallies, with declines of as much as 50%. Historically, today’s pullback signals that bitcoin will hit new highs again in the next (six months).

In cryptocurrencies, pullbacks are actually a normal occurrence, and Meltem Demirors, chief strategy officer at CoinShares, said that some of the leverage in the market was squeezed out in April, but there is still a lot of leverage, so this cryptocurrency correction is healthy.

For now, the panic in the market continues and the entire crypto market is in turmoil. Whether this bloodbath is the beginning of a new bull market or the arrival of a bear market cannot be definitely judged in the current situation, and Chaintech will continue to follow up the relevant news.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/519-plunge-review-farewell-to-the-night-of-panic-the-bull-market-is-to-go-or-stay/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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