On Friday night, the collective “avalanche” of Chinese concept stocks stunned global investors. However, on Saturday noon, the virtual currency also began a collective “flash crash.” Bitcoin slumped $10,000 in the afternoon, with a 24-hour drop of more than 20%.
The latest data shows that in the past 24 hours, a total of 417,000 people have lost their positions. The total amount of digital currency contracts on the entire network reached US$2.584 billion (approximately RMB 16.4 billion). Among them, the liquidation amount of Bitcoin within 24 hours alone exceeds 1 billion US dollars.
According to the latest data on the CoinMarketCap website. As of 9 o’clock on Saturday night, the total market value of global digital currencies is 2.2 trillion U.S. dollars. Compared with the previous day, it decreased by 16.74%, and the evaporated market value exceeded US$440 billion (approximately RMB 285.3 billion).
Roughly calculated according to public data. With the collapse of Binance Coin, Changpeng Zhao, regarded by Forbes as the richest man in China. His net worth may evaporate more than 10 billion yuan a day.
The collective virtual currency “flash crashed” and 417,000 people lost their positions
As of about 7:40 pm on December 4th. Bitcoin is quoted at approximately US$46,500 per coin, a drop of over 18% in 24 hours. Ethereum reported about 3850 US dollars per coin, a 24-hour drop of about 16%. In addition, EOS fell more than 28%, Cardano fell more than 22%, and Monero fell more than 20%. Dogecoin fell more than 22%, and Binance Coin (BNB) fell nearly 13%.
Prior to this, the price of Bitcoin hit a record high in November this year, breaking through to $69,000. The overall market value of cryptocurrencies has climbed to around US$3 trillion. However, after the failure to hit the $70,000 mark, the Bitcoin price trend was obviously weak. The highest price of Bitcoin hit $59,000 on December 1, and has since fallen all the way.
The latest data is displayed. As of 8 pm on December 4, in the past 24 hours. A total of 417,000 people broke their positions, and the total amount of digital currency contracts on the whole network reached US$2.584 billion. Among them, the liquidation amount of Bitcoin within 24 hours alone exceeds 1 billion US dollars.
What is the reason for the collective destruction of virtual currencies?
Some analysts said. Behind the collapse of virtual currencies may be the resonance of multiple factors: including interest rate hike expectations (short-term interest rate soaring), pessimistic expectations of stagflation, and Taper acceleration expectations, etc. In addition, risk factors include the continuous spread of new variants of the Omi Keron strain of the new crown mutant virus. “In short, risk assets are currently undergoing a sharp correction. Nowadays, the correlation between encrypted assets and mainstream risk assets is also increasing.”