On April 13th, the cryptocurrency market was really bleeding. Especially friends in Asia found that their positions and money were gone when they woke up early in the morning. This day was called the 413 incident. Unexpectedly, there was another 414 incident the next day, and another 20% drop occurred. 300,000 people were liquidated, and some people took over these bloody chips. Some people thought that this was just a small episode, and greater fluctuations were yet to come.
What is the reason? If you watch the news, you might think that the cryptocurrency crash is caused by the war in the Middle East, but isn’t Bitcoin supposed to be a safe-haven asset? It should be a safe haven in troubled times! Let’s look at the media’s predictions, saying that miners will sell their previously hoarded Bitcoins, causing prices to plummet.
Do you still remember the reason for the big drop before the last big rise? Yes, it’s Grayscale! But everyone has seen the subsequent rise. Although this time is called a big drop, the declines of Bitcoin and Ethereum are not that exaggerated. They fell from 73,000 to 60,000, a drop of about 19%.
Looking at altcoins, almost all have fallen by more than 40%, and some have been cut in half.
In general, this plunge is mainly due to the upcoming Bitcoin halving. Everyone, including institutions, is not sure about the market fluctuations during this period. Whenever there is a disturbance, large investors will sell to avoid risks, causing the price of Bitcoin to fall. . Especially in the battle between long and short whales, once there is a situation of short pressure or long pressure, large fluctuations are inevitable.
As for altcoins, their fluctuations are basically a magnified version of Bitcoin. When the risks are uncertain, holders will naturally choose to sell for hedging, which is also the main reason for the collapse of altcoins.
