In the past 24 hours, the global cryptocurrency market has experienced a dramatic price fluctuation. From the evening of April 12 to the early morning of April 13, the market value of major digital currencies such as Bitcoin, Ethereum and many other small tokens generally fell. What caused this sudden market turmoil? The question everyone wants to ask now is whether the bull market is still there, whether it has fallen to the bottom, and whether it is time to buy the bottom. Next, I will analyze the market for you.
Market Summary
From a macro perspective, the total market value of cryptocurrencies fell to $2537.9 billion, a 24-hour drop of 7.3%. Bitcoin is now at $67,366, a 24-hour drop of 4.91%, and once fell below $66,000; Ethereum is now at $3,251, a 24-hour drop of 8.16%, and once fell below $3,100, with a maximum drop of 9.34%; SOL fell below $150 and then rebounded to $151, a 24-hour drop of 12.57%. The cottage callback was more severe, and mainstream currencies such as MATIC, XRP, DOGE, BCH, etc. all fell by more than 20%, and the previously popular MEME coin BOME even fell by more than 50%.
The total liquidation volume in 24 hours was US$878 million, of which long liquidation reached US$784 million.
The reason behind
As far as the market is concerned, many people are already worried whether this is a precursor to the interruption of the bull market. At present, there are several different views on this plunge in the market:
One theory is that this plunge is due to a correction before Bitcoin halving. Several key reasons why the market may experience a correction and plunge before Bitcoin halving include:
First, since the block reward for Bitcoin mining will be halved, miners will receive fewer Bitcoins for the same mining work. This reduction in potential income may force them to pay for higher operating costs in the next quarter and sell Bitcoin at its current relative high, increasing supply pressure on the market and thus pulling down prices.
Secondly, the market's high expectations and speculation about the halving event may push up prices before the event, and once these expectations are not met, prices may reverse sharply. In addition, if the market buys in too much too early before the event, any small trigger close to the event may lead to large-scale profit-taking, resulting in a sharp drop in prices.
Finally, based on historical patterns and psychological expectations, investors often use historical patterns to guide current market actions. Given that past halving events have sometimes led to significant price increases, market expectations are high. However, if these expectations begin to appear overly optimistic, investors may begin to sell their holdings before the halving to take advantage of the current high prices, which could cause the market to fall.
Therefore, while the halving itself is a positive sign for Bitcoin, the uncertainty and speculation leading up to the halving could lead to significant market volatility and price corrections.
From a macro perspective, the Fed's balance sheet continues to shrink, reducing the supply of dollars in the market. The reduction in dollar liquidity, especially in the global financial system, usually leads to a fall in the prices of risky assets, including stocks and cryptocurrencies. Since the cryptocurrency market is very sensitive to changes in liquidity, capital outflows may lead to a sharp drop in prices. In addition, when the market expects that the dollar will become more scarce, investors may turn to more stable or traditional assets and reduce their investment in cryptocurrencies.
Iran and Israel are on the verge of a war
The situation in the Middle East escalated yesterday. The United States urgently dispatched warships, saying that Iran would attack Israel as early as Saturday. Biden warned Iran not to take action. At present, the aircraft carrier is sailing north through the Red Sea towards Israel. Rocket air defense alarms sounded many times in northern Israel. The Israeli army said it was done by Hezbollah.
In real wars and great turmoil, these coins in the cryptocurrency world are all bubbles.
Gold and silver are both rising sharply
Despite the current uncertainty in the market, many investors and analysts remain optimistic about the long-term prospects of cryptocurrencies. They believe that this price adjustment may provide a good opportunity for long-term investors to enter the market. Every adjustment in the market is a test of investor sentiment and market trends, and it is also a period of layout for potential future growth.
This round of decline was sudden, but we must understand one thing: the entire market is falling. You are not the only one losing money. The entire market is trapped. I am the same. You are not the only one who is anxious. A decline is a good opportunity to increase your positions. If you still have bullets, pick up some cheap chips.
Why do those who missed out on opportunities and dare not buy after the market has risen too much dare not buy after the market has fallen? As long as you are sure that there will be a bull market, go for it boldly and buy at the bottom in batches. Few people can catch the real bottom, so just fire your bullets in batches.
Later, I will bring you analysis of leading projects in other tracks. If you are interested, you can click to follow. I will also organize some cutting-edge consulting and project reviews from time to time. Welcome all like-minded people in the cryptocurrency circle to explore together.
