BTC has a single-day volatility of 3,000 points, and tens of billions of funds have been bloodbathed
According to the latest market quotation of Bitcoinwin, BTC fell from the highest position of 58677 to the lowest position of 55494 at night yesterday, with a volatility of 3183 points throughout the day, and the amplitude reached 5.73%. However, BTC only fell -2.34% yesterday in terms of market ups and downs. As of now, the market has rebounded slightly, with BTC reported at $57,124.
In our understanding, it is normal for BTC to rise or fall by two or three points in a single day. However, with the fall of BTC yesterday, it also led to the decline of other mainstream altcoins, and the market fell into panic, causing a lot of trampling.
The overall decline in the cryptocurrency market yesterday brought a considerable impact to the contract market. According to data from Bitcoin Home.com, as of last night, the one-hour liquidation funds in the contract market reached 115 million U.S. dollars (about 750 million yuan). In the last 24 hours, a total of 306,000 people have liquidated their positions on the entire network, and their funds amounted to US$1.78 billion (approximately RMB 11.644 billion).
Why did the digital currency experience a collective plunge? The editor summarizes the following points.
First, the continuous rise in recent days has put the digital currency under the pressure of short-term adjustments, and the 60,000 mark has been unable to break through for a long time, giving the shorts a chance to counterattack.
Second, on April 7, Goldman Sachs CEO David Solomon said that he believes that the Bitcoin and digital currency world will soon undergo a "big change", especially in terms of regulation in the United States. He did not reveal exactly what Goldman is doing with Bitcoin, suggesting that the current regulatory environment in the U.S. prevents Goldman from doing so. But Solomon made it clear that Goldman is paying close attention to cryptocurrencies due to growing client demand. Furthermore, Solomon said: “We continue to think about digital currencies and the digitization of money in a very positive way”. He added that there are "significant regulatory requirements" for measures dealing with cryptocurrencies.
Third, on April 6, Ren Zeping, chief economist of Soochow Securities, expressed his opinion on the skyrocketing of Bitcoin, pointing out that the growth rate of M2 in the United States and the growth rate of broad money in the United States are the highest in 20 years, and they are surprisingly high. This is why the stock market has risen, the housing market has risen, commodity prices have risen, including gold, and why Bitcoin has hit new highs since last year? The fundamental reason is that we have ushered in the flood of dollar liquidity.
