"610" strikes, altcoins generally fall by 30%, what happened to the encryption market?
At noon on June 10, the cryptocurrency market experienced a sudden change.
Although the decline of BTC and ETH was not obvious (both around 3%), other altcoins generally saw a 10% - 40% decline in the short term. From the OKX decline list, we can see that many well-known altcoins, including LOOKS, TON, CETUS, DASH, etc., have fallen by more than 25%.
Under the extreme volatility, in the past 1 hour, the total liquidation of the entire network was 217 million US dollars, of which about 203 million US dollars were liquidated for long orders, and approximately 13.8288 million US dollars were liquidated for short orders.
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Opinion from: Exit Liquidity Capital Partner Nick
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Opinion via: Twitter KOL EthDaddy
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Opinion via: Mudit Gupta, Chief Information Security Officer, Polygon
In addition to the speculation of "market makers fleeing", there are also some other bad news in the industry today, such as TUSD has temporarily stopped minting TUSD through Prime Trust, and Grayscale has submitted a request to the US SEC to withdraw the application for Filecoin trust products. But objectively speaking, these news aspects obviously cannot have such a large-scale impact on the market, so we are still inclined to the above speculation.
Earlier this week, as the SEC successively filed lawsuits against two leading exchanges such as Binance and Coinbase, the cryptocurrency market attracted a new round of regulatory shocks.
Under the crazy output of the SEC, some institutions that have been involved in cryptocurrencies have begun to distance themselves due to compliance pressure. For example, Robinhood has decided to delist the "securities" tokens mentioned by the SEC in the lawsuit (these Tokens are also down quite a bit this round).
It is inferred from this that due to the same compliance pressure, or worrying about the follow-up trend of the market (if there is a serious unilateral market due to supervision, market makers will face greater inventory risks), it is not a problem for market makers to choose to withdraw early. incomprehensible.
It is worth mentioning that in the SEC v. Binance case, the SEC also accused the two major market makers on the Binance platform, such as Sigma Chain and Merit Peak, of being secretly involved with Binance and that the flow of funds was not transparent. Today's change is related, and it cannot be confirmed for the time being.
As of the publication of this article, after the first round of slump, the market seems to have some signs of stabilization for the time being. As for how it will develop in the future, Odaily will continue to follow up and report.
