Bitcoin fell from $43,000 to $29,000 and Ether fell from $3,400 to $1,700 in a bloody “massacre” in the cryptocurrency world yesterday.
The market was in an uproar as Bitcoin fell from $43,000 to as low as $29,000 and Ether fell from $3,400 to as low as $1,700, adding another 519 to its “anniversary” alongside 312, and the head exchange was affected by the plunge with restrictions on withdrawals and operational lag, even Coinbase was down. No one is immune to the plummeting market.
Centralized exchanges were affected, but what about decentralized exchanges?
According to Uniswap trading volume checks, V3’s trading volume, which surged more than 40 times yesterday, saw the price of coins fall and tokens in wallets being sold off in large numbers by users.
In addition, the rapidly falling price also triggered the liquidation price of overcollateralization such as collateralized lending in Defi, which also led to the withdrawal of users in the DeFi protocol, for example, Uniswap’s lock-in volume dropped by 16%. According to DeBank data, $108 million in liquidation volume occurred in 24 hours on mainstream DeFi protocols.
The instantaneous increase in on-chain transactions has very clearly boosted gas fees.
From 80gwei at noon yesterday, it plummeted to quickly exceed 1,000gwei, with a limit of over 1,500gwei, and is currently holding around 100-300gwei.
The coin price has been decimated and the speculation is too bad.
So why would it plummet so quickly? Because whether it’s the market’s main force or retail investors, such a fast plunge always requires reasons and behaviors that can lead to it, and the reasons and behaviors have to be supported by enough logic.
In bitcoin 43000 and ethereum 3400 this price quickly sold off, there may be several inferences as follows.
- The market turns bearish and large investors sell off, creating a stampede.
The market turning bear is the most important information that investors involved in the secondary market want to get, as it represents a signal to leave the market. It is also the most logical reason for the start of a decline. There are three corollaries to the market turning bearish.
Recent negative comments from bigwigs about bitcoin; Tesla stopping bitcoin payments; and increased regulation.
In such a context, there must be big investors or majors ready to leave the market. What we saw yesterday, within 15 minutes, the price of the coin fell rapidly, disregarding the market maker’s operation outside, there must be a large number of active and urgent sell orders that would appear to keep going to depress the price to sell. This is the first time I’ve ever seen a retailer sell, and I’ve seen a retailer sell, and I’ve seen a retailer sell, and I’ve seen a retailer sell.
The reason for this is that the price difference between 312 and 519 is huge, and because of the plunge in bitcoin and ethereum, most of the other tokens have been bloodied. The most representative is the volume performance of uniswap, with V2 growing 1.5 times with $1.7 billion in volume, and V3 growing 44 times with $59.3 billion in volume. The formation of a stampede and panic at a glance.
- Collecting at low levels and hoarding chips.
If we go to think about whether this plunge is about the inference that the main force low collection of stockpiling chips. Mainly in thinking about the previous 3 months, the bitcoin price has been oscillating up and down in the 40,000-60,000 range, for the top of the bull market, oscillating at an absolute high for 3 months. It is a rare phenomenon, and, this needs to be satisfied by the condition that the main force carrying out such an operation shipped out while protecting the market, and then finally sold out at once.
The current timing also requires a more critical price performance, namely the weekly closing price of this week. Whether the closing price can return to a safe range is the most important.
- create short sentiment and dump people off.
This thinking is seen in combination with the inference of a low close. Short sentiment, mainly appears before the market is extremely pulled up. A picture often spread in the coin circle is about the different market sentiment during the bull market. The main coins will appear at the end of the bull market as an extreme price reflection.
And before the main force does such a move, are sure to dump most of the unswerving retail investors off, dump off the method, create everyone’s bearish sentiment, guide the selling, and then pull up quickly. The pressure to pull up in this way is relatively small.
From the price point of view, if in the last inference, this week’s closing price can return to a reasonable price, so that this week’s plunge is only a short-term performance, that is, the low short trap.
- Sniping between majors.
Plunges are common in the coin world, but the magnitude of yesterday’s plunge is relatively rare. Such a large drop has also exceeded the safety range set for many contract positions.
According to Contract Emperor data, between 12:00 yesterday and 12:00 today, 35.577 billion positions were exploded across the network, with about 475,000 people exploding their positions. And the key to this is that the 3 largest burst positions, respectively, a $20.19 million BTC long, a $45.18 million ADA long, a $67 million BTC long.
The closing prices, respectively, were $35,634 and $31,021.
The effect of the fixed point blast is obvious, within 24 hours, BTC and other positions dropped significantly. For example, for BTC positions, huobi dropped 38%, OKEx dropped 40%, BitMEX dropped 37%, Binance dropped 44%, and Bybit dropped 43%. Obviously, the long-short ratio across the network has also become more balanced, at about 48%-49% long orders to 51%-52% short orders.
This calmness after the plunge is necessary. In the first few months, on the ethereum chain, various types of assets appeared, making a lot of extreme anti-logic in the cryptocurrency industry, where the bubble has affected the market sentiment, and the plunge coincided with cooling the market and sober thinking.
Written at the end
There are several inferences about yesterday’s plunge that require investors to judge for themselves, as there is no clear indication of market news since the arrival of the plunge. And in the face of the unsuspected plunge, it’s important to find your niche. If this week’s weekly close does not return to a safe price and the market thus turns bearish, the future brings the possibility that we need to start preparing for the next round. Or rather need to start preparing for the long term investment.
Regardless of the trend, the most important thing for investors is still the timing of buying and selling, after selling is the end of an investment, book assets are not assets this saying, in the plunge will be reflected in the best way.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/cryptocurrency-waiver-day-reappears-these-ideas-cant-be-missed/
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