#加密市场回调 Why has Bitcoin been falling in the past two days?
The market is currently in an "extremely greedy" state, which generally means the market is likely to pull back, according to Coinglass' indicators.
There is also the year-end effect. December is a period of adjustment for risky assets. Investors will liquidate their assets at the end of the year to take profits. Especially around Christmas, the market fluctuates greatly. In addition, December 20 is the expiration date of derivative financial products, and investors will liquidate a large amount of money, putting pressure on the market.
There have been huge inflows into Bitcoin and Ethereum ETFs recently, but the single-day net outflow of the Bitcoin spot ETF hit a new high of $680 million, showing that investors are liquidating a lot.
The price of Bitcoin also recently fell below US$96,000, causing 300,000 people to liquidate their positions, resulting in losses of more than US$1.03 billion.
The main reasons include hawkish comments from the U.S. Federal Reserve, a rise in the U.S. dollar index and rising U.S. Treasury yields, all of which have put pressure on the cryptocurrency market.
The current virtual currency market is facing some challenges, especially during the important adjustment period at the end of the year and the impact of policy uncertainty. We hold on to the currency and wait for the rise.
