Bitcoin plunge: warning of 166,000 liquidations

On the afternoon of January 9, the virtual currency market suddenly changed, and the price of Bitcoin plummeted, causing shock. According to CoinGlass data, at 17:00 on the same day, the price of Bitcoin was 92,958.7 US dollars, a 24-hour drop of 3.07%, causing 166,000 liquidations worldwide, with an amount of 485 million US dollars (about 3.556 billion yuan). At the same time, mainstream virtual currencies such as Ethereum and SOL also fell sharply.

This is not the first plunge. On January 8, Bitcoin fell below the $96,000 mark, a 24-hour drop of 5.88%, and more than 230,000 liquidations, with an amount of 712 million US dollars.

On the news, the US government was allowed to liquidate nearly $6.5 billion in Bitcoin, which may cause the market to fall again. In addition, US economic data suggests inflation stickiness, which raises questions about the Fed's interest rate cuts. The market is fragile under high leverage, and investors are prone to withdrawing funds, resulting in price plunges and liquidations.

In the second half of 2024, the price of Bitcoin soared, breaking $100,000 on December 5, reaching a high of $108,366.8, and breaking $106,000 on the 16th to a new high, and then fluctuated violently.

The fluctuations in the price of Bitcoin have caused heavy losses to investors who bought at high leverage and high prices. Not only did they lose all their principal, but they may also be in debt.

This incident warns ordinary investors: Before investing, they must fully understand the risks, reasonably control leverage, and remain rational and calm.

From a macro perspective, the volatility of the Bitcoin market reflects the problems of the global financial market. It is closely linked to the traditional financial market, and price fluctuations have spillover effects. The decentralization of virtual currencies increases the difficulty of supervision.

The sharp drop in Bitcoin and the explosion of warehouses have sounded the alarm for the financial market. Investors and regulators should be cautious and put risk control first when investing. #BTC $BTC