According to real-time data from BTC126, a total of more than 2.3 billion yuan of virtual currency contracts have been liquidated in one day, and a total of 75,291 people have liquidated in the past 24 hours. The largest single liquidation receipt occurred at Bitmex-ETHUSDT worth

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In the past month, virtual currency has been falling continuously. On September 22, Bitcoin fell below the two major marks of $20,000 and $19,000 again. As of press time, Bitcoin has temporarily reported US$18,578, a sharp drop of 8.09%.

According to BTC126 real-time data, a total of more than 2.3 billion yuan of virtual currency contracts have been liquidated in one day. A total of 75,291 people have liquidated their positions in the past 24 hours. The largest single liquidation receipt occurred at Bitmex-ETHUSDT worth US$6.14 million.

news, on September 21 local time, the U.S. Federal Reserve announced that it would raise the target range of the federal funds rate by 75 basis points to between 3% and 3.25%. This is the fifth time that the Federal Reserve rate hike in this year, and it is also the third consecutive rate hike in 75 basis points. Affected by this news, the three major indexes of U.S. stocks plunged in late trading and closed down. Federal Reserve Chairman Powell said at a press conference that in order to pull inflation back to 2% and remain stable, he will work to raise interest rates and keep interest rates high until inflation drops.

Fed Chairman: Will continue to raise interest rates until inflation eases

According to CCTV News on the 22nd, on September 21 local time, after the Federal Reserve announced a 75 basis point rate hike, Federal Reserve Chairman Powell said at a press conference that in order to pull the inflation rate back to 2% and maintain stability, he will be committed to raising interest rates and keeping interest rates high until inflation drops. He said that according to historical records, policies cannot be relaxed too early.

On September 21, Federal Reserve Chairman Powell attended a press conference in Washington. Image source: Xinhua News Agency

Powell said that the United States has no room for complacency, and although it is appropriate to slow down the pace of rate hikes at some point, the Federal Reserve will "stick until the work is done." Powell said it was impossible to predict whether this process would lead to an economic recession and how severe the recession would be, "it will depend on the rate of decline in wages and inflation pressures, whether expectations remain stable and whether we can get more labor supply." He added that if policies need to be subject to more restrictions to achieve the 2% inflation target, the likelihood of a “soft landing” will be reduced, however, high inflation will bring greater long-term pain.

Powell said that despite some improvement in the supply chain, the decline in inflation so far has not been as large as the Fed expects, and housing inflation will remain high for some time. Powell said that supply and demand relationships need to be readjusted to ensure affordability of housing.

The Federal Reserve announced on the 21st economic forecast believes that the U.S. inflation rate measured by personal consumption expenditure (PCE) will reach 5.4% in 2022 and drop to 2.8% in 2023. According to forecasts, the growth of GDP in the United States in 2022 will be only 0.2%, and 1.2% in 2023; by the end of 2022, the unemployment rate in the United States will reach 3.8%, and will rise to 4.4% in 2023.

Federal officials have previously said they are seeking a "soft landing" of the U.S. economy to curb inflation by slowing growth but not triggering a recession. However, economists are increasingly worried that over time, the Fed's sharp rate hikes will lead to sharp layoffs in U.S. businesses, rising unemployment rates, and a full-scale recession at the end of this year or early next year. Associated Press also commented in the report that radical interest rate hikes have increased the risk of the United States falling into a recession.

According to Securities Times , in the view of industry insiders, the surge in USD index not only brings about the fluctuations in the global financial market, but also the bloody storm in the virtual currency market. In fact, there are also many virtual currencies with cumulative declines of more than 80% this year. Currently, the total market value of the global digital currency has fallen below $1 trillion.

The Fed's interest rate hike trajectory has always been an important factor in determining the Bitcoin price trend in 2022. Since the beginning of this year, as the Federal Reserve steadily raises interest rates, the price of virtual currency has fallen. Under the uncertainty of the path and amplitude of the Federal Reserve's interest rate hike in , assets with higher risk fluctuations have occurred. Cici Lu, CEO of consulting firm Venn Link Partners, said: "Funds are flowing out of risky assets. Virtual currencies follow the sharp adjustments in U.S. stocks."Some industry insiders believe that due to the close correlation between US stocks and virtual currencies in recent months, the Fed's attitude has penetrated into the virtual currency market, which is the reason for the recent sell-off of Bitcoin.

currency exchanges have exploded one after another. At the same time, many crypto asset platforms have exploded one after another. According to the Securities Times citing overseas media reports, Poolin, one of the world's largest Bitcoin mining pools, recently issued a statement saying that due to liquidity problems, withdrawals, lightning transactions and internal transfers have been suspended.

htmlOn August 11, crypto trading platform Hotbit issued a statement saying that it will suspend recharge, withdrawal and trading functions, and the specific recovery time cannot be determined at present. "Hotbit will resume normal services immediately after the assets are thawed. All users' assets and data on Hotbit are secure and correct. ”

July 26, Bloomberg reported that according to three people familiar with the matter, Coinbase, the largest cryptocurrency trading platform in the United States, is facing an investigation by SEC. The investigation content is whether the latter improperly allows Americans to trade digital assets that should have been registered as securities. People familiar with the matter said that since Coinbase expanded the number of tokens it provides for trading, the US Securities and Exchange Commission has increased its scrutiny of the platform.

htmlOn July 24, the currency exchange Hufu (hoo.com) issued an announcement on its official website on the official website of Hufu Debt Coin Conversion Plan, Partner Investment and Other Business Optimization Plan. The announcement stated that Hufu will be on August 1 From the date, all trading services will be stopped, all business status will be cancelled, user assets will be transferred to wallet accounts, and debt-coin conversion solutions and partners' investment solutions will be launched, and financial derivative contract transactions will be optimized.

Image source: Photo Network-501024898

On July 20, Southeast Asian cryptocurrency exchange Zipmex officially announced that it would suspend user withdrawals until further notice in the future, and explained that this is because of various environmental impacts that the company cannot control, including market fluctuations, and thus causing some important business partners of the company to fall into financial difficulties.

htmlOn July 13, Celsius, one of the world's largest crypto lending platforms Network announced that it has filed for bankruptcy under Chapter 11 of the Bankruptcy Act in the US Bankruptcy Court of the Southern District of New York. Celsius said the reason for proactively launching the bankruptcy proceedings is to "provide the company's opportunity to stabilize its business and successfully complete the bankruptcy restructuring transaction to maximize value for all stakeholders. "According to Celsius' estimates at the time, he only had $167 million in cash on hand, while his own debt was $1 billion to $10 billion, involving more than 100,000 creditors.

Previously, Celsius issued an announcement on June 13 that it had suspended all withdrawals, transactions and transfer services due to "extreme market conditions". It also stated that it was in the best interests of the community and customers. At that time, many investors suspected Celsius's operating conditions, but the platform insisted that the goal was still to stabilize the liquidity and operation of the community, but the process took time.

Earlier, on July 1, the cryptocurrency hedge fund Three Arrows Capital, 3AC) filed a bankruptcy protection application in the Bankruptcy Court of the Southern District of New York, USA, and announced that it had entered the bankruptcy process. Sanjian Capital's bankruptcy caused a huge chain reaction. Because Sanjian Capital failed to repay approximately US$650 million in cryptocurrency loans, on July 6, one of Sanjian Capital's main creditors, cryptocurrency broker, and Canadian listed company Voyager Digital filed for bankruptcy.

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