The reason for the sharp drop in Bitcoin has been found! The market value of 4.5 trillion cryptocurrencies evaporated, and the German government sold 75 million US dollars.
Bitcoin has fallen for three consecutive days. Today, the daily decline exceeded 5%, falling below 57,000 US dollars. Ethereum also fell nearly 5% to 3,149 US dollars, and other virtual currencies fell one after another. From the perspective of total market value, the latest total market value of virtual currencies is 2.13 trillion US dollars. Compared with the highest point of 2.76 trillion US dollars this year, it has fallen by more than 600 billion US dollars, equivalent to RMB 4.5 trillion.
What is the reason for this round of decline? There are mainly three points
1) Uncertainty in the US election
Investors are worried that US President Joe Biden may not be re-elected, and the Democratic Party may launch a more powerful candidate, which may be unfavorable to the cryptocurrency industry.
Trump has always been open about his love for cryptocurrencies. He has also issued NFTs and is even rumored to be speaking at the BITCOIN2024 event held this month. Biden has always been ambiguous, and recently he has expressed his intention to accept Bitcoin in order to attract young voters.
2) A German government wallet transferred tokens worth about $75 million to an exchange, which increased market concerns about the government's sell-off
The German government has been selling cryptocurrencies recently. How short of money is it? In comparison, El Salvador's situation is much bigger. Instead, it buys more as it falls!
3) The pending case of Mt.Gox
The trustee of the Mt.Gox exchange is returning a large number of bitcoins to creditors in stages, and the market is uncertain about how much of these bitcoins will be sold.
This time it is a token repayment instead of fiat currency, so everyone is worried about selling pressure. The best way to deal with strong uncertainty is not to do anything, just hold it and wait and see, and avoid blindly buying the bottom.
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