On the evening of June 26, Beijing time, Bitcoin plunged again, dropping to $30,000 at one time, reducing all the gains accumulated in the past six months.
This is also the second time Bitcoin has fallen to $30,000 this month, completely shattering the confidence of speculators.
In just two months, the wind direction of the virtual currency market has undergone a major reversal.
Virtual currency collapses across the board
On the evening of June 26, Beijing time, after three days of pulling the line at $30,000, the price of Bitcoin took a sharp turn, falling by more than 53.5% from the highest price of $64,900 in the year on April 14. The current price has returned to the level before Tesla CEO Elon Musk pushed Bitcoin at the beginning of the year.
UAlCoin data shows that a total of more than RMB 3.2 billion in virtual currency contracts broke out in one day, and more than 30,000 heads were bloodbathed.
Image source: UAlCoinGlassnode data shows that the number of active addresses for bitcoin transactions has hit a new low since this year, and the activity of bitcoin transactions has fallen to the bottom range of this year, and the number of people concerned has gradually decreased.
Image source: alternative.meAlternative.me showed that on June 27, the virtual currency trading sentiment index dropped to 20, which was in a state of extreme panic. In the past week, panic in the market has been particularly severe.
The Baidu search index shows that Bitcoin search volume continues to decrease, and market attention has dropped significantly.
Virtual currency investor Lin Hai (a pseudonym) told a reporter from China Securities News: “When Bitcoin first began to fall, there was still a lot of chatter and laughter in the speculation group. Everyone was joking about when to increase positions. Since the 50% plunge this month, the group It’s all quiet, most people are silent, and the number of group chats has also begun to decrease, and it feels like it’s about to disband.”
Some virtual currency market analysts pointed out that the number of new bitcoin addresses has continued to decline recently, and the market’s incremental funds have decreased significantly. From the technical chart, Bitcoin’s upward attack was blocked and the short-term fall. Considering that the upward selling pressure is relatively large, the short-term trend is approaching the previous low, the rebound continues to be weak, the short sentiment is strong, and there is a risk of deep correction in the future.
Tesla or sell off the market
The price of Bitcoin has hovered around $30,000 in the past week. Analysts said that it is difficult to foresee a turnaround in Bitcoin.
Analysts from the JP Morgan Chase team said that the recent market is challenging. The data shows that the virtual currency sell-off is to make up for losses, and there may still be a large number of positions lower than the actual value that need to be cleared through the market.
Recently, JPMorgan Chase surveyed about 3,000 US investors from more than 1,500 institutions. The vast majority of participants (90%) stated that their companies would not invest in digital assets, and 80% claimed that they would never enter the cryptocurrency market. At the same time, four-fifths of the interviewees expressed their desire to impose stricter restrictions on virtual currencies.
Some market participants speculate that the recent decline in Bitcoin is related to Musk’s vacillating attitude towards Bitcoin, because Bitcoin mining consumes a lot of energy and is inconsistent with Tesla’s environmental protection stance. Tesla may sell Bitcoin and reject it. Bitcoin as a payment method. The current relatively fragile market has triggered panic among retail investors.
In early February, Tesla announced that it had purchased $1.5 billion worth of Bitcoin and revealed that it would accept Bitcoin as a payment method.
Many people in the encrypted digital asset industry believe that this news is an important catalyst for the rapid increase in the price of Bitcoin from $20,000 to $60,000. However, the price of Bitcoin has now fallen below the cost price when Tesla bought it, laying a hidden danger for Tesla’s second quarter earnings report.
According to market estimates, Tesla started to invest in Bitcoin in the first quarter of this year and obtained more than $100 million in investment income from it, accounting for nearly a quarter of the company’s net profit. However, the price of Bitcoin has undergone a substantial adjustment in the second quarter, and the price will be cut in half. If Tesla does not sell the Bitcoin it holds, it may cause an investment loss of close to US$100 million.
Mining machine sold at 50% off
The currency price is cut in half, and virtual “mining” activities are no longer active.
It has been a week since Sichuan Province, the “important town” of virtual currency “mining” activities, has comprehensively cleaned up and rectified mining activities. Cumulative data on the production and selling of bytetree miners show that in the past week, both the production and selling of miners have fallen, indicating that the selling sentiment of miners has risen significantly, which may mean that more miners choose to shut down.
Image source: bytetreeSelling mining machines has become the choice of many miners. A large number of second-hand mining machines have poured into the market, causing prices to plummet, which is a far cry from the hot scene of “a machine is hard to find” a few months ago.
A mining machine seller pointed out that the group of miners used to communicate is now used to sell transformers and mining machines. The price of Bitmain’s S19jPRO-100T mining machine has been cut from 70,000 yuan to about 30,000 yuan. “As long as it can be sold, any price can be accepted.”
Image source: miner sellerDue to a large number of second-hand spot rushes to the market, Bitmain, the world‘s largest cryptocurrency mining machine manufacturer, announced a few days ago that the second-hand market is under great pressure. In order to help the industry transition smoothly, it has decided to temporarily stop selling spot products worldwide.
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