The truth behind the sudden drop in Bitcoin and Ethereum prices revealed? $BTC$ETH
Bitcoin fell below the $60,000 mark, while Ethereum fell below the $3,000 threshold.
In the past 24 hours, as many as 72,712 investors suffered liquidations, involving a total amount of $232 million, of which long orders suffered particularly heavy losses, accounting for nearly $200 million. So, who is the driving force behind this?
The primary factor, I tend to blame the unexpected weakness of US employment data last Friday night. The market expected employment growth to far exceed the expected 170,000+, but the actual increase was only 110,000+, and the unemployment rate climbed to 4.3%. This data hit directly led to a comprehensive decline in the US dollar, US stocks and commodity markets. At the same time, market institutions quickly adjusted their expectations for the Fed's interest rate cuts, from the original forecast of two to three times this year.
However, the market has become cautious in interpreting the news of the rate cut for two reasons:
First, the expectation of a rate cut has long been widely digested in the market; second, the decline in the US inflation level may indicate the risk of an economic recession, which is undoubtedly a double blow to the stock market and the cryptocurrency market.
Secondly, the transfer activities of the Silk Road Bitcoin address under the supervision of the US Department of Justice have once again aroused the sensitive nerves of the market, especially the significant changes in the flow of funds of the Ethereum spot ETF. As of August 2, although the total net asset value of the ETF remained at US$8.332 billion, the historical cumulative net outflow of funds has reached US$511 million, reflecting the risk aversion of investors.
Furthermore, the continued turbulence of the external environment cannot be ignored. The potential selling pressure in Mentougou is like a sword hanging over the head, which may cause market turmoil at any time. In addition, the tense global geopolitical situation, including the escalating conflicts in Iran, Israel, Russia and Ukraine, has added more uncertainty and risks to the market.
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