Global crypto market plunges: Bitcoin falls below $50,000, is the bull market over?
Today's crypto market has experienced severe shocks, with Bitcoin falling 16% in just one day, hitting a low of $49,365. In just 6 days, Bitcoin fell from $70,000 to $50,000, an astonishing drop! In the past 24 hours, more than 270,000 people around the world were liquidated, with a liquidation amount of about $1.05 billion, of which the liquidation amount of long orders was as high as $900 million. The total market value of the cryptocurrency market evaporated $300 billion in one day!
What exactly caused this "market massacre"? I think macroeconomic factors are the main reason.
1. The US dollar plummeted against the yen
The Nikkei 225 index plunged 12.4% today, wiping out all gains this year and setting a record for the largest drop in points in history. The drop was due to the sharp fluctuations in the US dollar against the yen. The Bank of Japan has just raised interest rates to 0.25%, and the Fed chairman said that interest rates may be cut in September, which has narrowed the interest rate gap between Japan and the United States, which in turn triggered the appreciation of the yen exchange rate. The market, which originally relied on the low-interest yen for overseas investment, suffered the impact of interest rate inversion, causing setbacks to assets such as technology stocks and Bitcoin. At the same time, the negative news of the weekend financial report, Buffett's reduction of holdings, and the negative news of Nvidia products have also exacerbated market turmoil.
2. Tensions in the Middle East
The ongoing conflicts in the Middle East, such as the Iran-Israel conflict, the Palestine-Israel conflict, and the Hezbollah attacks in Lebanon, have made the global capital market uneasy and the market uncertainty has increased significantly.
3. The prospects of the US election are unclear
Recently, Harris has emerged among the presidential candidates and raised a new high of $200 million. As an opponent of cryptocurrency, Harris's rise has brought more uncertainty to the market outlook. In addition, the competition between the two parties continues, which also casts a shadow on the cryptocurrency market.
Should I buy the bottom now?
Based on my experience in the currency circle for more than 6 years, it is recommended to make decisions after the emotions are stable. The market news is complicated and it is easy to lead to emotional operations, so it is necessary to be particularly cautious when making decisions at this time.
