Bitcoin fell below $18,000, and there were users in the currency circle who paid 500,000 yuan for tuition and only 55 yuan left when they quit

“I dreamed at night that I would buy the dips and do more, and I was scared out of a cold sweat. Then I remembered that I had stopped playing, and I felt lost and happy.” The user joked to a reporter from Beijing Business Daily. Some users bluntly told the Beijing Business Daily reporter that they paid 500,000 yuan for tuition, and when they quit, there were 55 yuan left in the account.

Since June, virtual currencies led by Bitcoin and Ethereum have plummeted. On June 19, Bitcoin fell below the $18,000 mark, with a minimum close to $17,600, which is also the lowest price of Bitcoin since December 2020. After falling below $18,000 twice, Bitcoin saw another wave of gains in the day. Under the roller coaster market, the currency circle is also tightly surrounded by panic.

When you log out, there is only 55 yuan left in the account

At about 4:00 a.m. on June 19, Bitcoin fell below $18,000, and the currency circle user Liu Jie (pseudonym) received a liquidation risk alert from the platform. In the next 15 minutes, one of Liu Jie’s trades was forced to close because the currency price fell below the set risk level.

After checking the balance of the remaining accounts again, Liu Jie put down his mobile phone and ended his “watching the market” for almost an entire night. Since entering the currency circle in 2017, Liu Jie has become a child who “doesn’t do business every day” in the eyes of his parents. The days of staring at the market all night like this have become routine in the past. On June 19, after a short break, Liu Jie told a reporter from the Beijing Business Daily that he could only see a string of numbers in his account changing when speculating in coins. He was really red-eyed and a little numb recently.

Regarding the specific loss since June, Liu Jie has always been silent in the interview, but only told a reporter from Beijing Business Daily that in this wave of slump in June, he ushered in the largest single-month loss in four years of currency speculation. The accumulated experience and hedging plans have almost all failed.

According to Liu Jie, he currently holds a total of 3 trading accounts, with a total of nearly 3 million yuan in account funds at most. In the past month, one account has lost almost zero. Compared with users who have just started to operate virtual currency, Liu Jie has more ideas on trading operations, including capital dispersion, low leverage setting loss expectations, and direct setting of some fixed investment currencies.

“But judging from the actual situation now, all transactions are basically in a state of loss, and the most secure fixed investment part is almost cut in half. ‘Cutting the meat’ is a bit late, you can only set up a hedging account and wait to see if the follow-up returns. There is a possibility of turning around.” Liu Jie said.

Unlike Liu Jie, who still has expectations for the market outlook, Wang Wei (pseudonym) chose to be completely out after a year of “rambling” in the currency circle. In the past year, Wang Wei has successively invested nearly 500,000 yuan in currency speculation. “On the day I uninstalled the exchange’s app, the last 40,000 yuan of funds directly exploded, and my trading account was only 55 yuan .” Wang Wei said.

Looking back at the step by step transfer of the money in the bank card to the unfamiliar account in the past year (in order to purchase stablecoins for hype trading), Wang Wei bluntly said that he seemed to be possessed. Wang Wei said that he told himself time and time again that this was the last time, but in the end, he still voted more and more. When the last fund burst, his bank card balance was only more than 10,000 yuan.

The last liquidation that overwhelmed Wang Wei occurred on June 13. Bitcoin fell below $27,000 the day before and narrowed its decline, regaining the $28,000 mark. Later, Wang Wei, who believed that the currency price was expected to stabilize, entered the market to “buy the bottom”, but Bitcoin ushered in a 20% plunge.

Wang Wei said that after uninstalling the software, he made a decision to stay away from the currency circle. Recently, Bitcoin has been continuously declining, and it has frequently appeared on various news platforms. “I dreamed at night that I did a lot of bargain hunting, and I was scared out of a cold sweat. Then I remembered that I had stopped playing, and I felt both disappointed and happy.” Wang Wei said.

It fell below $18,000 twice in a day

Under the attention of the public, the virtual currency is going further and further on the road of plummeting, and the crazy stories of the currency circle are also continuing. On June 19, Bitcoin fell below the $18,000 mark twice within a day, and the lowest price dropped to $17,600 , which is also the lowest price of Bitcoin since December 2020.

In terms of single-day trading prices alone, Bitcoin has fallen for 11 consecutive days, setting a record for the longest losing streak since its inception in 2009. Extending the time line, at the beginning of June, Bitcoin started at $32,000. Of the 19 transactions, Bitcoin only rose on 5 trading days.

Bitcoin has been trending lower since June 9. On June 18, Bitcoin, which had been struggling at the $20,000 mark for several days, still failed to hold this mark, hitting a low of 18,700 yuan within the day, closing down 8% on the day. On June 19, Bitcoin fell below $18,000 twice in a day, and narrowed its decline after approaching $17,600 and falling by more than 3%. Other cryptocurrencies were equally tragic. Ethereum fell below $900, and well-known altcoins such as Dogecoin and Shiba Inucoin also gave back their previous gains one after another, showing a weak trend.

On the afternoon of June 19, after falling below $18,000 twice, Bitcoin went out of the reversal trend again. According to data from CoinGecko, a global currency price website, as of 18:30 on June 19, Bitcoin was reported at $19,718.57, a 24-hour increase of 1.8%, and a drop of 30.4% in the past seven days; Ethereum was reported at $1,055.70, a 24-hour increase of 4.6%, a drop of 30.7% in the past seven days.

Bitcoin fell below ,000, and there were users in the currency circle who paid 500,000 yuan for tuition and only 55 yuan left when they quit

Image credit: CoinGecko

Under the slump, the liquidation of the currency circle is also intensifying . According to data from the global currency price website Coinglass, as of 8:00 on June 19, a total of more than 124,000 people in the cryptocurrency market on the entire network had their positions liquidated in the past 24 hours, and the total liquidation amount was as high as 457 million US dollars, or about 3.069 billion yuan. .

Bitcoin fell below ,000, and there were users in the currency circle who paid 500,000 yuan for tuition and only 55 yuan left when they quit

Image credit: Coinglass

Earlier, the crash of the luna coin caused by the collapse of the algorithm stablecoin shocked the currency circle and was once called the biggest “black swan” in the history of the currency circle. The luna currency, whose market value was as high as $41 billion, plummeted in a short period of time, and the price fell from nearly $90 to less than $0.0001. This also put the currency circle into doubt.

Regarding the reasons for the recent trend of virtual currencies, Chen Jia, a researcher at the Institute of International Monetary of Renmin University of China, pointed out that first, investors’ confidence has been severely frustrated under the expectation of the adjustment of U.S. monetary policy, and risk aversion has spread from the stock market to the U.S. crypto asset market. ; Second, the macroeconomic performance of the United States combined with the international political and economic landscape has accelerated the accumulation of risks in the short term, and venture capital institutions have started reverse operations to balance global exposure to risk assets, while crypto assets such as Bitcoin and the currency circle are unfortunately the first to bear the brunt, and will be drawn from the currency circle in the short term . The liquidity is amazing .

Chen Jia believes that, coupled with the US monetary policy and regulatory trends, the recent collapse of the terra/luna ecosystem, and the fact that celsius, one of the world’s largest cryptocurrency lending platforms, has just suspended its withdrawal service, the financial ecology of the currency circle is accelerating.

Another senior blockchain researcher also analyzed that the prosperity of virtual currencies maintained by high leverage was shattered by “black swan” events such as the Luna crash and Three Arrows Capital. The increase in interest rates has led to the lack of sufficient liquidity in the cryptocurrency market, and the market consensus needs to be rebuilt urgently.

“The main problem is the lack of liquidity , because the plummet of Ethereum has caused many defi projects that maintain high leverage to face a liquidation crisis, and user confidence is also obviously insufficient.” said the above-mentioned senior blockchain researcher.

The total market value has shrunk by nearly 70%

For a long time, the skyrocketing Bitcoin and the currency circle have always been hot topics. When Bitcoin soared from $3,000 to nearly $70,000, the “bull market” in the currency circle attracted countless users to participate, but there were also many people like Wang Wei who left the market in a hurry.

Many interviewed users told the Beijing Business Daily reporter that compared with other types of trading assets, the “bear market” of virtual currency is more ferocious and cruel. According to CoinGecko data, in November 2021, the total market value of the cryptocurrency market on the entire network once exceeded US$3 trillion, and currently only US$912.1 billion remains, a drop of nearly 70%.

On the other hand, a reporter from the Beijing Business Daily noticed that under the plummeting market, many users in the currency circle mentioned that “it’s time to buy the bottom again” on various social platforms. At the same time, based on the characteristics of two-way trading of virtual currency, it is not uncommon to say that “the profit from opening a short order has turned over”.

In response to this situation, Liu Jie explained to a reporter from Beijing Business Daily that the unilateral plummeting market actually shows that the market as a whole is in a vicious circle, the currency price trend is more difficult to grasp, and it is actually difficult to make money. Even if a user chooses the right direction, it is more of a “gambler’s mentality”, which is actually difficult to last.

“Combining the characteristics of bitcoin transactions and no actual value support, once there are negative factors affecting the currency price trend, the market sentiment is obviously pessimistic, and it is prone to ‘stampede accidents’, causing further plunges . Therefore, the recent trend of cryptocurrency is also It is expected.” Wang Peng, associate professor of Renmin University of China, analyzed.

Chen Jia bluntly stated that from historical experience, although encrypted assets are known as electronic gold, they do not have the monetary function of real gold, and it is difficult to solve the core pain points of encrypted assets in the short term.

How can ordinary users avoid this risk? Wang Peng believes that for new technologies such as bitcoin and blockchain, users must first fully understand and objectively view their operational logic, and they should be more cautious about capital investment. Whether it is virtual currency or other types of investment, risks and returns are always proportional. Users should establish a correct concept of wealth and do not try to get rich overnight.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/bitcoin-fell-below-18000-and-there-were-users-in-the-currency-circle-who-paid-500000-yuan-for-tuition-and-only-55-yuan-left-when-they-quit/
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