Bitcoin has collapsed again! More than 140,000 people have liquidated their positions! The Asia-Pacific market has fallen across the board

Securities Times E Company

2024-05-01 17:29Published on the official account of "Company E" under Guangdong Securities Times

On May 1, Beijing time, Bitcoin fell below $57,000 per coin, a drop of more than 6%.

According to data from the virtual currency monitoring website Coinglass, in the last 24 hours, a total of 142,000 people liquidated positions in the virtual currency market, with a total amount of 466 million US dollars (about 3.374 billion yuan).

Industry insiders said that Bitcoin's recent downturn is mainly related to the slowdown in the inflow of Bitcoin spot ETF funds.

According to data, as of April 29, the net outflow of US bitcoin spot ETFs in April reached $182 million. Notably, these ETFs received a net inflow of $4.6 billion in March.

Since the fourth quarter of 2023, the price of bitcoin has been climbing for a while, reaching a high of $73,000 per coin in mid-March.

According to market analysis, the sharp rise in the price of bitcoin, in addition to the fact that the traditional investment market cannot meet the demand for investment or speculation, has also benefited from the historic relaxation of the supervision of bitcoin by the US regulatory authorities, resulting in a large amount of US dollar funds flowing into the bitcoin spot ETF market.

However, since then, the trend of Bitcoin consolidation at a high level has been obvious. And as an extremely volatile asset, there are times when the decline is large and has caused liquidation.

On April 2, for example, bitcoin fell by more than 6%. According to the market data disclosed at the time, about 150,000 people were liquidated. Previously, some media disclosed that Bitcoin has been repeatedly switching between soaring and plummeting recently, and the excessively high price makes Bitcoin dangerous, and the reversal of market sentiment often occurs in an instant, and the money evaporates faster than water.

The weakness is not only virtual currency, but also many external capital markets.

On May 1, the major stock indexes in the Asia-Pacific region closed down across the board, with the Nikkei 225 Index falling 0.34% to 38,274.05 points, among the constituent stocks, NEC and Komatsu Group fell more than 2%, and Mitsubishi UFJ Financial, Keyence, and SoftBank Group fell more than 1%.

In addition, Australia's S&P 200 fell 1.23% to 7,569.90, New Zealand's S&P 50 fell 0.75% to 11,867.58, and South Korea's stock market was closed for holidays.

The Federal Reserve is scheduled to announce its May interest rate decision at 2 a.m. Beijing time on Thursday, followed by a press conference by Fed Chair Jerome Powell at 2:30 a.m. The market is now highly focused on how the Fed will deal with the current stubborn inflation problem, and the Fed's policy direction will undoubtedly be a key factor affecting the market.

As the US core PCE (personal consumption expenditures) grew at an annualized rate of 4.4% in the first quarter of this year, this significantly weakened market expectations for a near-term rate cut by the Federal Reserve. At present, most research institutions are cautious about the Fed's interest rate meeting. Market expectations for a rate cut have shifted significantly from the optimism at the beginning of the year, with some investors even believing that the Fed may not cut rates at all in 2024.

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