Revelation of the reasons for the plunge in Bitcoin and alternative coins: Market shock news triggers deep thinking
When Bitcoin's trend seemed stable, it suddenly suffered a sharp drop in the evening, and the price once fell to around $68,000. What is the reason behind this plunge?
Under the cover of night, Bitcoin once rebounded to a high of $72,000, but the previous drop was still shocking. What kind of power is hidden behind this plunge that began at 15:30 UTC time?
In-depth analysis, we found that the external factors that led to the decline of Bitcoin mainly came from the release of US agricultural employment data. Today, the US released agricultural employment data for May, showing that the number of newly employed people was as high as 272,000, far exceeding the market expectation of 182,000. The release of this data not only broke the market's expectations for the Fed's interest rate cut in July, but also boosted the value of the US dollar. At the same time, the market's expected probability of a rate cut in September also dropped from 56% in the previous period to 45%.
In addition, another major event cannot be ignored. Roaring Kitty, the representative of the GameStop phenomenon, conducted a live broadcast on YouTube, attracting more than 600,000 viewers. However, in this highly anticipated live broadcast, Roaring Kitty did not release any shocking news or statements as the market expected. This caused GameStop's stock price to plummet by more than 40%, and the meme coin with the same name fell by more than 50%. Many meme coins also suffered a double-digit market value shrinkage.
This series of negative factors not only directly affected the Bitcoin market, but also triggered a chain reaction in leveraged trading. According to Coinglass data, the leveraged trading losses caused by the Bitcoin plunge have reached 40 billion US dollars, of which the number of lost users is close to 150,000. Behind this figure is the painful reality that countless investors have lost all their money.
