“The appreciation of the U.S. dollar overwhelms the currency circle: 70% of Bitcoin and Ethereum have retraced from the high level of the 1 billion explosion, and the top platform has suspended withdrawals” On September 7, the two major cryptocurrency leaders, Bitcoin and Ethereum, both plummeted again. The biggest intraday losses were more than 6% and 10%, respectively. In less than 10 months, the price of Bitcoin fell from the highest level of $69,185.5 to $18,787.3, with a cumulative decline of 72.85%. From $4,879.02 in November last year, Ethereum has fallen by 68.67% in less than 10 months. According to the data of the contract emperor, the cryptocurrency market exploded nearly 1 billion yuan within 24 hours, involving nearly 40,000 positions. Poolin, one of the world’s largest bitcoin mining pools, recently issued a statement saying that it has suspended withdrawals, lightning transactions and internal transfers due to liquidity problems. In the eyes of industry insiders, the reason behind this round of slump in cryptocurrencies is the strength of the U.S. dollar. On September 7, the U.S. dollar index rose 0.22%, continuing to hit a new high in 20 years, reaching as high as 110.4956.
The U.S. dollar index soared to a new 20-year high, bringing not only global currency losses but also bloodshed in the cryptocurrency market.
On September 7, the two major cryptocurrency leaders, Bitcoin and Ethereum, both plummeted again, with the largest intraday drop of more than 6% and 10% respectively. According to Yingwei’s financial data, the total market value of cryptocurrencies fell below 1 trillion US dollars, and the latest value was only 946.8 billion US dollars.
Bitcoin and Ethereum both fell by about 70% from their peaks
On September 7, the price of Bitcoin fell below the $19,000 mark again, with a minimum of $18,497.70. As of press time, the price of Bitcoin was reported at $18,787.3, a drop of 5.38%.
This is the second consecutive day that the price of bitcoin has fallen sharply. On September 6, the price of Bitcoin also fell by 4.52%, and the intraday price fell below the $19,000 mark for the first time since July 13.
In less than 10 months, the price of Bitcoin fell from the highest level of $69,185.5 to $18,787.3, with a cumulative decline of 72.85%.
Ethereum’s decline is even worse. On September 7, Ethereum fell by more than 10%. As of press time, the price of Ethereum was $1,528.62, a drop of 8.18%.
Similarly, from $4,879.02 in November last year, Ethereum has fallen by 68.67% in less than 10 months.
There are also many cryptocurrencies that have fallen by more than 80%. According to Yingwei’s financial data, the total market value of cryptocurrencies has fallen below 1 trillion US dollars, and the latest is only 946.8 billion US dollars. Among them, the total market capitalization of Bitcoin and Ethereum is only $360.5 billion and $187.3 billion, respectively.
According to the data of the contract emperor, the cryptocurrency market exploded nearly 1 billion yuan within 24 hours, involving nearly 40,000 positions.
Another platform suspends withdrawals
Poolin, one of the world’s largest bitcoin mining pools, recently issued a statement saying that it has suspended withdrawals, lightning transactions and internal transfers due to liquidity problems.
This move is in line with our goals of protecting assets, stabilizing liquidity and operations in a bleak crypto market, and we will continue to explore strategic alternatives with all parties,” the company said.
On the 4th, Pan Zhibiao, the founder and CEO of Biyin, responded in the circle of friends that the reason for the difficulty in withdrawing coins was due to the lack of liquidity, and the user’s funds were safe. Currently, the net assets of Biyin enterprises are also positive. The following feasible solutions will be proposed, and the details will be announced: liquid debt, debt-for-miner, debt-for-share.
The strong dollar is considered to be the trigger for this round of cryptocurrencies
Since the beginning of this year, the cryptocurrency market has continued to fluctuate violently. Especially since the LUNA coin explosion, the cryptocurrency has plummeted one after another. Both Bitcoin and Ethereum have fallen by about 60% this year.
According to industry insiders, the reason behind this round of slump in cryptocurrencies is the strength of the U.S. dollar. On September 7, the US dollar index rose 0.22%, continuing to hit a new high in 20 years. As of press time, it was as high as 110.4956.
The strength of the dollar has been accompanied by rising U.S. long-term and short-term interest rates and inflows into the dollar, which is seen as a safe asset, while cryptocurrencies such as bitcoin are losing their safe-haven role against the dollar.
With the Federal Reserve likely to continue raising interest rates, the big bear market for cryptocurrencies is far from over. Chris Esparza, founder of decentralized finance (DeFi) protocol Vault Finance, said that the imminent tightening of the Federal Reserve’s policy presents a “poor outlook” for Bitcoin.
In the future, the decline of cryptocurrencies may continue. “Bitcoin is below $20,000, it’s happened before, and it’s likely to drop a little more now,” said Kevin Loo, director of investment insights at IDE Asset Management. “Bitcoin’s price in the first crypto winter $3,000.”
As a well-known Bitcoin holder, Tesla has already cut its Bitcoin holdings by 75% in the second quarter, adding $936 million in cash to its balance sheet.
In May of this year, Buffett said that Bitcoin is not a productive asset and will not produce anything tangible; on June 14, Microsoft founder Bill Gates also attacked the cryptocurrency project, he believes that the cryptocurrency project It is a scam based on the “Bo silly theory”.