Per Editor: Du Yu
Recently, Bitcoin has been weaker, closing down for 6 consecutive trading days from January 2 to January 7. It is worth noting that bitcoin has intensified its shock in these 2 days, although it closed down 0.44% on January 10, but it fell more than 5% intraday, and the 11th data also showed that the lowest intraday decline also reached 4.72%, and then the decline was recovered.
However, this trend of back and forth has made many investors burst their positions.
According to the data of Bitcoin Homeland Network, in the past 24 hours, 103231 people have exploded, and 2.537 billion funds have been wiped out.
Many netizens have also expressed their views on this:
Notably, Jim Greco, managing director of crypto trading firm Radkl, said that the investment enthusiasm for Bitcoin is fading and trading activity is sluggish. In the face of Bitcoin's sluggishness, the growth of active addresses (a measure of trading activity) has also stagnated.
Kantorovich, head of reporting at FalconX Agency, believes this could lay the groundwork for a short-term, sharp liquidity crunch that could lead to a lightning crash similar to December 2021.
Kantorovich also believes that "the fewer active addresses, the more assets stored in the 'cold storage'. The fewer Bitcoins that can be traded, the greater the volatility that can be expected as the liquidity between order books decreases. I think you're going to see a very quick, very short flash crash that will clear out the open interest in the market very quickly, similar to what we saw in December last year. ”
Daily Economic News synthesizes Bitcoin home network, public information
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