Huaxia Times reporter Hu Jinhua reported in Shanghai
Although the cryptocurrency market is overwhelming, with the trend of the outbreak of the new crown pneumonia epidemic in the United States becoming more and more obvious, and the Trump government's still negative response policies, the digital currency endorsed by US dollar credit finally showed an unprecedented "collapse".
htmlOn the evening of March 12, the cryptocurrency market suddenly fell sharply, and the price of Bitcoin fell rapidly from US$7,000 to US$5,500 in 10 minutes, a drop of nearly 24%. Other cryptocurrencies were also sold wildly, and the top ten currencies ranked in the market value generally fell by more than 30% in the past 24 hours.Correspondingly, the digital currency contract market is also not spared. According to the latest data from Coin Coin, the total liquidation of the entire network in the past 24 hours has reached US$2 billion. Among them, Bitcoin liquidated $1.29 billion, Ethereum liquidated $174 million, EOS liquidated $61.27 million, BCH liquidated $84.27 million, LTC liquidated $28.6 million, XRP liquidated $36.54 million, BSV liquidated $47.16 million, ETC liquidated $9.83 million, and TRX liquidated $3.61 million. The largest single liquidation occurred on Huobi Exchange, with BTC worth $58.32 million being exposed. According to QKL123 data, the total market value of cryptocurrencies plummeted by more than 24% within 24 hours, only 1.3 trillion yuan. During this rapid plunge, nearly 80,000 people became victims of liquidation.
《Huaxia Times 》 reporter learned that the premium rate of USDT pegged to Bitcoin soared sharply, with the off-market price of USDT at US$7.45, which is 6.37% compared with the current exchange rate of US$7.0035. This signal can usually be seen as investors selling cryptocurrencies on the market to cash in USDT or over-the-counter investors use fiat currency to buy USDT to buy cryptocurrencies at the bottom.
"There are less than two months left before Bitcoin halving. Many investors believe that the halving of Bitcoin will drive a sharp rise in the price of the currency and leverage crazy. This large-scale liquidation will hit investors' enthusiasm for long Bitcoin to a certain extent. Bitcoin cannot avoid being affected by the current market turmoil. Due to the coronavirus panic, Bitcoin may fall to a lower level of $6,000." In response, Bitmex CEO Arthur Hayes previously said. However, today's cryptocurrency market far exceeded his imagination.
, while Cao Yin, managing director of the Digital Renaissance Foundation, analyzed in an interview with relevant media that Bitcoin’s recent performance is the same as gold, with funds flowing in and outflows. However, in the eyes of most investors, BTC is still a high-risk asset and is affected by the herd effect, so it has recently leaked more short-term speculation funds.
But the problem is that the collapse-style plunge of cryptocurrencies is almost very lethal to the entire market. After the contract funds of 2 billion US dollars are in liquidated, all new funds will pour into this market next, which is unknown.
"The new crown pneumonia epidemic spread rapidly, global stock markets suffered crazy selling, and even gold fell. Just today, the Asia-Pacific stock market circuit breakers sounds one after another, and the stock markets of four countries, Philippines , Thailand, Indonesia , and Pakistan , triggered circuit breakers. Previously, Brazil stock market had circuit breakers twice, and the US stock market on Monday After all circuit breakers, the circuit breakers were again today, and the Kuwait stock market was also circuit breakers on Monday. The new crown epidemic is posing a severe challenge to the global economy. In order to cope with the economic crisis that may be triggered, the UK and the United States have urgently cut interest rates, and other countries are also formulating market rescue and other economic stimulus measures. If there are still people in this market to encourage investors to enter the market, it is tantamount to drinking poison to quench thirst." In this regard, Wang Hang, an analyst at Shanghai crypto digital currency market, told a reporter from the China Times on the evening of March 12.
In fact, cryptocurrency continues to fall, not only the shrinking wealth of coin holders, but more affected are miners and mining machines in the industrial chain. This plunge will be a nightmare for mining practitioners.
According to the mining machine income ranking provided by the official website of Biyin, it can be found that under the situation of 0.38 yuan per kilowatt-hour, many mining machines have touched the shutdown price.For example, the Shenji Ant S9, which accounts for 40% of the computing power of the entire network, has entered the shutdown price across the board, and a total of 38 mining machines with shutdown price have reached 38 models.
What’s even more terrifying is that only Ant’s latest mining machines S19 and S19PRO, which account for less than 50% of the electricity bill. What is this concept? Bitcoin is expected to be halved in 58 days, which means that assuming that the currency price remains the same and the returns are halved, most mining machines will enter a state of life and death.
Source: China Times
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