The cryptocurrency market plummeted! More than 200,000 people were liquidated, Bitcoin and Ethereum were slaughtered, is the bull still there?
The cryptocurrency market has experienced an unprecedented violent fluctuation. In the three days since August 2, the total market value has briefly fallen by as much as $510 billion, which is the largest three-day sell-off in the past year. This sudden storm not only caused the prices of mainstream cryptocurrencies such as Bitcoin and Ethereum to fall sharply, but also aroused widespread attention and deep reflection in the market.
The primary reason for the market decline is the weak employment data and the renewed concerns about the economic recession. As a barometer of economic health, the poor performance of employment data directly hit investors' confidence. At the same time, the performance of many technology giants fell short of expectations, especially the disappointing second-quarter earnings reports of companies such as Microsoft and Intel, further exacerbating the pessimism in the market. Market leader Nvidia was not spared. Hit by the expectation of an upcoming interest rate cut, capital began to flow back from large technology stocks to smaller and underperforming companies, which to some extent also affected the flow of funds in the cryptocurrency market. The slowdown in the growth of technology stocks is another important reason.
On August 5, the price of Bitcoin plummeted 10% in just two hours, from $58,350 to $52,500.
Ethereum's decline was even more severe, falling 18% during the same period, and more than $256 million of Ethereum long positions were liquidated.
The three-day plunge of $510 billion in the cryptocurrency market sounded the alarm for us. With the increase in market volatility and uncertainty factors, we should look at market changes more rationally.
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