At 5 o’clock in the morning on September 22, Bitcoin fell below $40,000. According to the Huobi Global App, Bitcoin fell from the highest point of the day at US$43,267.23 by nearly US$4000 to US$39,585.25. Ethereum fell from US$3047.96 to US$2,650. Other cryptocurrencies also fell by more than 10%. Mainstream cryptocurrencies This price reached its lowest level in a week. As of press time, Bitcoin is quoting US$41,879.38 and Ethereum is quoting US$2,855.18.

According to statistics from the third-party market currency coin, in the past 24 hours, there were 595 million U.S. dollars in liquidation, and a total of 132,800 people had liquidated positions.

In addition, according to Coinmarketcap data, the current total market value of cryptocurrencies is US$1.85 trillion, once again falling below US$2 trillion. The current market value of Bitcoin is $794.4 billion, accounting for approximately 42.9% of the total market value of cryptocurrencies, and the current market value of Ethereum is $337.9 billion, accounting for approximately 18.3% of the total market value of cryptocurrencies.

Regarding the recent sharp drop in Bitcoin, according to Forbes, Jonas Luethy of Global Block, a digital asset broker, pointed out in a report this Monday that increasingly stringent regulatory review is the cause of panic selling. He cited a report issued by Bloomberg last weekend that Binance, the world’s largest cryptocurrency exchange, is being investigated by US regulators for possible insider trading and market manipulation.

“The market will not explain price changes, but will’price in’ various factors.” Blockchain and digital economist Wu Tong said in an interview with the “Blockchain Daily” that the Federal Reserve meeting will be held immediately. But the market has also expected the Fed to reduce its bond purchases this year. Coupled with the recent strong statements of the US SEC on security tokens and Defi, strengthening supervision is a short-term trend in the US encryption industry. ”

He analyzed that the crash and the “flash crash” of cryptocurrencies on September 7 reflected the crypto market’s tendency to pull back in the short term, but what is certain is that this pullback is more deeply affected by the global financial level.

William, the chief researcher of Huobi Research Institute, also made the same point.

“This plunge started in Hong Kong stocks, and then spread to other markets.” William analyzed to a reporter from the “Blockchain Daily” that as more and more investors included Bitcoin in the asset allocation pool, Bitcoin and traditional The relevance of the capital market has also gradually undergone fundamental changes. From the data point of view, since March 2020, except for the regulatory storm on the cryptocurrency market in May and June this year, the S&P 500 and Bitcoin prices have continued to maintain a positive correlation. relation.

William pointed out that in addition to the “contagiousness” of the Hong Kong stocks plummet, the market’s expectations for the monetary policies of the world’s major central banks are also the key reasons for the trend of the cryptocurrency market.

“Extremely loose monetary policy has created the prosperity of capital markets and cryptocurrencies in the past period, but this liquidity feast may usher in the end.” William further explained to the “Blockchain Daily” reporter that this week is global In the “Super Central Bank Week” of the market, the Fed will hold a September interest rate meeting and announce the latest economic forecast and interest rate hike policy on the 22nd local time. The market generally expects that the Fed will reduce its monthly asset purchases.

In addition, the central banks of Japan, the United Kingdom, and Turkey will also announce interest rate decisions this week. When the “water flooding” is not there, the prosperity of traditional capital markets and cryptocurrencies may also come to an end.

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Post time: Sep-22-2021