In the early morning of April 13, the entire cryptocurrency market was red and blood was flowing, especially for friends in Asia.
When I woke up, my positions were gone and my money was gone too.
It was also known as the 413 incident, but who would have thought that there would be a 414 incident in the early morning of the next day, which was another 20% drop in a dream.
Three hundred thousand people’s positions were liquidated. Some people received the bloody chips, while some people felt that this little bit of blood was just an acupuncture, and the bigger ones were yet to come.
So what exactly is going on with this decline?
If you read the news, you probably think that the war in the Middle East caused the cryptocurrency avalanche.
But isn’t Bitcoin a safe-haven asset? The more chaotic the world becomes, the more it should appreciate.
If you look at media predictions, they say that miners are going to sell off the Bitcoins they had previously hoarded, which led to a sharp drop.
Do you still remember what the excuse was for the big drop before the last round of big rise? That’s right, Grayscale crashed the market!
But everyone has seen the subsequent rise.
Although it is called a big drop, the drop in Bitcoin and Ethereum is not that exaggerated.
From 70,000 to 60,000, the peak drop was only 15%.
Looking at altcoins, the decline is basically above 40%, and some have even halved.
Overall, this round of sharp drop is mainly due to the approaching Bitcoin halving.
Everyone, including institutions, are not fully confident about the fluctuations during this period. As long as there is a slight disturbance, large investors will sell to avoid risks, causing the price of Bitcoin to fall. Especially the fight between long and short whales, once there is a short squeeze, large fluctuations are inevitable.
The volatility of altcoins is an amplified version of Bitcoin. Under the premise that the risks are unclear, holders will inevitably sell them to avoid risks, which is also the main reason for the altcoin avalanche.
