Affected by the sharp drop in U.S. stocks, the crypto market is also following the correction of U.S. stocks.
Bitcoin fell back to $56,500, and Ethereum fell back to $2,360. Altcoins also fell by about 10%.
The decline this time was mainly due to the US stock market. The US stock market began to fall as soon as it opened yesterday, and the three major US stock indexes all recorded their largest single-day declines since August 6.
Nvidia's shares fell more than 9%, their biggest one-day drop since late April.
Affected by this, Bitcoin is also following the decline of U.S. stocks, with the decline basically synchronized with the S&P 500 index.
The news worth noting is:
1. Data shows that the amount of Bitcoin in short-term circulation is decreasing
Judging from the data of short-term (less than 155 days) holders, the amount of bitcoins currently circulating in the market is gradually decreasing.
Only 2.66 million bitcoins have been traded in the past 155 days, down 660,000 from the peak in April this year.
This means that more and more investors are unwilling to sell their Bitcoins.
On the other hand, early Bitcoin holders remain intact.
It is clear from the data that these early investors are not interested in short-term price fluctuations, whether they make a profit or a loss. The number of Bitcoins held for the long term continues to increase.
The current price fluctuations are mainly determined by short-term investors, with retail investors selling and large investors buying at the bottom.
According to Lookonchain monitoring, a certain whale address bought another 322 bitcoins. The address purchased 2,322 bitcoins in 5 days, worth about US$136 million. The address currently holds 8,881 bitcoins.
This suggests that Bitcoin is shifting from short-term speculators to long-term investors.
As more and more Bitcoins are held for the long term, the circulating supply in the market decreases, which may drive up Bitcoin prices in the future.
2. The Governor of the Bank of Japan hinted at further rate hikes
Bank of Japan Governor Kazuo Ueda said the central bank would continue to raise interest rates if the economy and prices perform as expected, a comment that pushed the yen higher and raised concerns about continued interest rate hikes.
The Bank of Japan's interest rate hike plan may lead to a reallocation of global capital flows, especially the repatriation of funds from overseas to Japan.
This will have a profound impact on global markets, especially the U.S. Treasury, U.S. stock and cryptocurrency markets.
U.S. stocks may face pressure for capital withdrawal, and the crypto market will also experience greater volatility.
3. Decentralized financial protocol Penpie suffered a hacker attack, with total losses reaching $27.3 million
The hacker then exchanged all the stolen assets for 11,109 Ethereum, with a total value of approximately US$27 million.
It is worth noting that the hacker has deposited 1,000 Ethereum into the anonymous currency mixing protocol Tornado Cash to hide the whereabouts of the funds.
This also reminds us to be extra careful when using these platforms. You stake for interest, but you also have to take into account the risk of your principal being stolen.
4. Binance plans to launch Solana’s liquidity staking token BNSOL by the end of September
Binance plans to launch a Solana staking product called BNSOL by the end of September, according to an announcement on Tuesday.
This product allows users to stake their SOL tokens and earn a portion of the network’s payments while also minting a liquid staking token called BNSOL.
Unlike traditional staking methods, BNSOL allows users to stake SOL tokens while still using them to trade or participate in other decentralized finance (DeFi) activities.
This means that users not only continue to receive staking rewards, but also have flexibility in how they use their tokens.
Binance’s Vishal Sacheendran said BNSOL is an ideal solution, especially for users who want to maximize the potential of their staked Solana tokens.
The launch of BNSOL is a boon for Solana, as it will enhance the liquidity of the token. At the same time, it may also increase the total stake of the Solana network and further promote the development of the Solana ecosystem.
5. Polygon launches the upgrade from MATIC to POL tokens, with an annual issuance rate of 2%
Polygon will officially launch the upgrade of its existing MATIC tokens to the new POL tokens on Wednesday.
The upgrade is part of the “Polygon 2.0” initiative, which aims to make token issuance more flexible and make POL the primary token for the Polygon PoS chain and other related chains.
The newly launched POL tokens will be issued at a rate of 2% per year, part of which will be used to reward validators of the Polygon PoS chain, and the other part will go into the community treasury to support the sustainable development of the entire ecosystem.
Marc Boiron, CEO of Polygon Labs, said that the upgrade was due to some technical limitations of the MATIC token, and the new POL token issuance method will better support the development of the community and decentralized network.
6. Catizen announced an 18-day countdown, and it is speculated that the countdown refers to the airdrop that the community has been looking forward to for a long time.
In general, this decline was mainly due to the U.S. stock market. Short-term ups and downs will still be large, so those who play contracts should be careful.
Currently, American investors are the main force, and the short-term trend of the crypto market will be linked to the U.S. stock market. For now, just focus on the U.S. stock market.
Next, we can focus on the release of non-farm data on September 6, the US presidential debate on September 10, the release of the US August CPI data on September 11, and the Federal Reserve’s interest rate meeting on September 18.
