A night of shock! 80,000 people were forced to close their positions, and the market lost more than $300 million
The market experienced a sudden plunge last night, catching many investors off guard. In the early hours of the morning, the price of Bitcoin suddenly fell below the $58,000 mark, falling by more than 7% in one day, and Ethereum was even worse, falling below $2,400 at one point, and as low as $2,388, a drop of more than 9%. This wave of decline directly led to the liquidation of many investors. It is said that in just 24 hours, more than 80,000 people were forced to close their positions, with a total loss of more than $300 million, which is really frightening.
Not only that, the US stock market was also implicated, and stocks related to cryptocurrencies fell. Companies such as Marathon Digital, Canaan Technology, and MicroStrategy all fell by several percentage points. Moreover, the decline has not stopped, and these stocks continue to fall after the market.
However, just when the market was bleak, the Nasdaq exchange received news that they were applying for approval from the US Securities and Exchange Commission to launch Bitcoin index options. This sounds like good news, but the current market doesn't seem to buy it, and everyone is busy dealing with the crisis at hand.
Speaking of which, this big drop was not without signs. Last Friday, Federal Reserve Chairman Powell said something that made everyone think that interest rates might be cut, and as a result, the cryptocurrency market rose like chicken blood. Bitcoin once reached a high of $65,000. But the good times didn't last long, the market began to calm down, and Bitcoin slowly fell.
Now many people are saying that this decline is because the market rose too sharply before, and now it is digesting the part that rose due to the expectation of interest rate cuts. Others say that the cost of Bitcoin mining is too high, and the current price is not good enough, so many miners and investors are selling, which has also exacerbated the market decline.
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