Bitcoin shook again, once "diving" more than $3,800, and more than 70,000 people liquidated, what happened

Edited by: Du Yu

The "currency circle" is another huge earthquake!

Following the heavy crash in the virtual currency market on April 13, on April 19, the price of Bitcoin crashed again, and Bitcoin once "dived" to more than $3,870, once falling below the $60,000 / integer mark, with a maximum decline of 6.1%.

As of press time, Bitcoin is tentatively trading at $62,301 per coin, down 1.84% during the day.

Bitcoin fluctuated sharply, CoinGlass data shows that in the last 24 hours, more than 70,000 people in the virtual currency market have liquidated, with a total amount of 208 million US dollars (about 1.506 billion yuan).

Earlier yesterday, the price of bitcoin plummeted to $59,900, the lowest price since March. Over the past 7 days, the price of bitcoin has fallen by more than 12%. Ether, the second-largest token by market capitalization, also fell below $3,000 over the same period, down 2.5% in 24 hours. Among other cryptocurrencies, Solana has plunged 22% in the past seven days, Avalanche has fallen 28%, and some smaller coins have fallen more than 30% over the past week. The crypto market was almost entirely lost, with multiple indexes tracking the coin market in the red, while the CoinDesk 20 index, which tracks larger coins, fell 1.8%.

Bitcoin has staged many "big ups and downs" recently. On March 14, Beijing time, the price of Bitcoin soared above $73,000, refreshing a record high for four consecutive days. However, on March 15, the price of bitcoin fell below $66,000 to a one-week low.

From 10:35 a.m. Beijing time on April 2, Bitcoin suffered a large-scale sell-off, and the price fell rapidly, falling below the two integer thresholds of $67,000 and $66,000 within 10 minutes, a decline of more than 6%.

In the early morning of April 13, the virtual currency market was "bleeding like a river" again. Among them, the price of bitcoin once plunged by more than $2,000, falling from $67,100 to below $65,000.

Some investors lamented on social media: "Money evaporates faster than water." ”

According to China Fund News, industry insiders said that Bitcoin's recent downturn is mainly due to the intensification of geopolitical uncertainty and the spread of risk aversion in the market to virtual currency assets.

In addition, high expectations and speculation on the Bitcoin halving event may push the price higher before the halving, and once these expectations are not met, a large number of investors may be inclined to take profits, causing the price to plummet.

Bitcoin may usher in the fourth halving in 15 years on April 19 local time. The first halving took place on November 26, 2012, the second on July 11, 2016, and the third on May 11, 2020.

JPMorgan analysts wrote in a note that the main impact of the quadrennial halving event is not the price of bitcoin, but the mining of bitcoin. As unprofitable miners exit the Bitcoin network, they expect the industry to consolidate, with publicly traded companies most likely to gain market share.

JPMorgan analysts wrote: "Publicly traded Bitcoin miners are in a strong position, mainly because they have easier access to financing, especially equity financing. This helps them scale their business and invest in more efficient equipment. ”

Contrary to market consensus, JPMorgan's analysis suggests that after the halving, the price of Bitcoin could fall as the market remains overbought. The bank also noted that the current price of bitcoin is still above its valuation of $45,000, which is a volatility adjusted price compared to gold.

JPMorgan Chase & Co. expects Bitcoin to cost $42,000 to produce after the halving. It is important to note that the cost of production of Bitcoin has historically been considered the lower bound of the price of Bitcoin. The bank noted that despite the recent recovery in the crypto market, venture capital financing remains subdued.

Similarly, Deutsche Bank analysts do not expect a significant increase in the price of bitcoin after the halving. Analysts say the event has already been priced in by the market since the Bitcoin algorithm had already foreseen the halving.

Image source: Visual China-VCG31N2061710618

For the upcoming "halving", Kevin, founder of Web3 CD and CEO of Full Speed Innovation Capital, previously pointed out in an interview with a reporter from the "Daily Economic News" that "the difference between this round of Bitcoin and the previous one is that the previous cryptocurrency bull market was after the 'halving', but this time it was before the halving, so this round of the market may come out of a different way than the previous ones." However, at least for now, the cryptocurrency market as a whole is in a rather disorderly state, and no one can better predict what will happen next. ”

According to a report by Beijing Business Daily, does Bitcoin have further upside space? How will it go in the future? Yu Jianing, co-chairman of the Blockchain Special Committee of the China Communications Industry Association, pointed out that digital assets led by Bitcoin can be regarded as a "future asset" whose value can effectively pass through the economic cycle. Digital assets can be understood as a mirror of the development of the digital economy, just as the stock market reflects the relationship between the real industry, and the revaluation of digital assets reflects the development and prosperity of the digital economy. However, as a highly volatile asset, the price of Bitcoin may experience wild fluctuations in the short term, which largely depends on factors such as market sentiment, macroeconomic environment, and regulatory policies.

Yu Jianing also reminded that the fluctuation of Bitcoin price is part of its essential attributes, and any investment decision should be based on sufficient market research and personal risk tolerance. Understanding the position of Bitcoin in digital assets and the underlying logic of the relationship between digital assets and the digital economy is of great significance for investment decision-making and market analysis.

According to Shangguan News, "First, Bitcoin presents high return potential, and over the past few years, the price of Bitcoin has outperformed traditional assets. Second, Bitcoin has a low correlation with traditional financial markets, and incorporating it into a portfolio can diversify risk. In addition, some investors believe that it has anti-inflation properties and can be used as a store of value. Angel investor Guo Tao analyzed to reporters.

However, there are still many risks associated with investing in Bitcoin. Wang Peng, a researcher at the Beijing Academy of Social Sciences, told reporters that the price of bitcoin can fluctuate significantly in a short period of time, causing investors to suffer huge losses, and although Bitcoin's technology is considered safe, there is still a potential risk of being attacked and stolen by cyber.

National Business Daily integrates China Fund News, Beijing Business Daily, Shangguan News, National Business Daily, and public information

National Business Daily