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Bitcoin plummeted by $5,000 in 15 minutes! More than 250,000 people liquidated, "money evaporates faster than water"

Bitcoin plummeted by $5,000 in 15 minutes! More than 250,000 people liquidated, "money evaporates faster than water"

The virtual currency market has been in the dark for another night.

Following the heavy crash in the virtual currency market on April 13, on April 14, Beijing time, the price of Bitcoin crashed again, once falling below the $60,000 per integer mark, falling by more than 7% in 24 hours. Starting at 4 o'clock in the morning on the 14th, the most feared scene of investors in the currency circle appeared: the liquidation text messages in the mobile phone continued, and the price of Bitcoin plummeted by 5,000 US dollars (about 36,187 yuan) in 15 minutes, resulting in an intraday liquidation of a large number of investors who were bullish on contracts.

A liquidator in the extreme market told a reporter from the China Securities Journal: "Bitcoin has been repeatedly switching between soaring and plummeting recently. Excessively high prices make Bitcoin dangerous, and reversals in market sentiment often occur in an instant, where money evaporates faster than water. ”

As of press time, the price of bitcoin continued to fluctuate, tentatively trading at $62,649 per coin, down more than 9% in 24 hours.

Bitcoin plummeted by $5,000 in 15 minutes! More than 250,000 people liquidated, "money evaporates faster than water"

Image source: CMC

Bitcoin suddenly plummeted

In the early morning of April 14, Beijing time, Bitcoin suffered a large-scale sell-off, and the price fell rapidly, falling as low as $59,968 per coin, and then briefly stopped falling and rebounded. Since 11 a.m., the price of bitcoin has fallen sharply again, falling below the $63,000 per integer mark.

Other currencies in the virtual currency market have all "plummeted". Ethereum fell more than 8.5% in 24 hours, and Dogecoin fell 13.72% in 24 hours. According to CoinGecko data, the total market capitalization of virtual currencies is $2.4 trillion, down 5.8% in 24 hours.

Bitcoin plummeted by $5,000 in 15 minutes! More than 250,000 people liquidated, "money evaporates faster than water"

Image source: CMC

According to Coinglass data, in the past 24 hours, a total of 258,000 people in the virtual currency market have liquidated, with a total amount of 966 million US dollars (about 6.99 billion yuan), of which 787 million US dollars have been liquidated by long orders and 179 million US dollars have been liquidated by short orders.

Bitcoin plummeted by $5,000 in 15 minutes! More than 250,000 people liquidated, "money evaporates faster than water"

Image source: Coinglass

This week, Bitcoin has staged several flash crashes. For example, on April 13, Beijing time, the price of bitcoin fell by more than $2,000, from $67,100 to below $65,000.

Bitcoin spot ETF inflows also continued to decrease this week. SoSoValue data shows that on April 12, Eastern time, there was a net outflow of $55.07 million from Bitcoin spot ETFs. Grayscale GBTC had a single-day net outflow of $166 million. The Bitcoin spot ETF with the largest single-day net inflow was BlackRock IBIT, with a net inflow of about $111 million. As of April 12, the total net asset value of the Bitcoin spot ETF was $56.22 billion.

Industry insiders said that bitcoin was sluggish this week, mainly due to increased geopolitical uncertainty and the market's risk aversion spread to virtual currency assets. In addition, high expectations and speculation on the Bitcoin halving event may push the price higher before the halving, and if these expectations are not met, a large number of investors may be inclined to take profits, causing the price to plummet.

An important "halving" event is approaching

A major event in the virtual currency market is coming this month - the Bitcoin "halving", because it will be directly related to the supply and demand of Bitcoin.

A Bitcoin "halving" event is the halving of the reward for producing a new block, which occurs approximately every four years. The exact timing depends on the speed of block generation on the Bitcoin network, which will reduce the supply of Bitcoin. The halving of the block reward means that it takes longer for all bitcoins to enter circulation.

BTC.com data shows that there are currently less than 7 days left before the fourth Bitcoin block reward halving occurs, with 996 remaining blocks, and the expected halving time is April 20. Previously, the Bitcoin network had already experienced three "halvings" in 2012, 2016, and 2020.

Cryptocurrency trader and independent analyst Rekt Capital said that the price of bitcoin will continue to recover before the "halving" event. During the 2016 and 2020 halving cycles, Bitcoin fell by 38% and 20%, respectively.

Recently, a JPMorgan Chase & Co. report noted that the Bitcoin "halving" event could have a serious negative impact on the profitability of Bitcoin miners. The report warns that the price of bitcoin could plummet to $42,000 per coin, which is more than 36% from the current price.

Long-term holders tend to take profits

Since the beginning of this year, Bitcoin has risen ferociously.

According to the latest report released by Messari, Bitcoin achieved a 69% gain in the first quarter of this year, and the Bitcoin spot ETF was the driving factor in the price increase, with inflows of more than $12 billion in the first quarter. The spot bitcoin ETF currently holds 831,000 bitcoins, worth about $59 billion.

Against this backdrop, the shares of cryptocurrencies and cryptocurrencies such as Coinbase, MicroStrategy and Galaxy Digital also rose sharply in the first quarter.

Notably, after the price of Bitcoin broke through its all-time highs, some long-term holders began to choose to cash out. Glassnode data shows that since the price of Bitcoin exceeded $40,000 at the end of 2023, the holdings of long-term holders (held on-chain for more than 155 days) have been declining, while the holdings of short-term holders have increased. During this time, long-term holders sold a total of about 900,000 bitcoins.

Source: China Securities Journal

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