Bitcoin has been falling since hitting a recent high of $70,079 on July 29, and once fell below $60,000 at 5 a.m. this morning, hitting a deepest level of $59,850, the lowest since July 14.
It was trading at US$60,566 as of press time, down 0.28% in the past 24 hours and 11% in the past seven days.
Possible reasons why Bitcoin plummeted?
QCP Capital released a report on the 3rd stating that the currency market is experiencing a sharp correction, with Bitcoin falling from US$70,000 to nearly US$60,000. The main reason for this decline is an unexpected surge in Bitcoin supply and the face of massive selling pressure, including transfers from the US government. About 28,000 BTC, Mt. Gox allocated 33,960 BTC to creditors, and Genesis allocated BTC and ETH worth $1.5 billion to creditors.
In addition, mining difficulty recently surged 10.5% to an all-time high, putting additional pressure on miners and forcing them to liquidate Bitcoin.
U.S. stocks plummet, Bitcoin and gold perform very differently
On the other hand, the recent higher-than-expected unemployment rate, AI bubble, and concerns about economic recession in the United States have led to a sharp decline in U.S. stocks and dragged down the global venture capital market.
However, it is worth noting that as the turmoil in the global financial market intensified, Glassnode data showed that gold once exceeded US$2,450, approaching a record high, and is now trading at US$2,442; however, Bitcoin has not reflected the function of a safe-haven asset, following the U.S. stock market fell.
As can also be seen from the figure below, the correlation between Bitcoin and gold has been very low recently. The correlation in the past 30 days was only 0.28, and the correlation in the past 90 days was even negative. It can be seen that Bitcoin wants to become a safe haven asset for digital gold. Some way to go.
Ethereum falls below $2,900
After falling below the US$3,000 mark yesterday, Ethereum further fell below US$2,900 at 4:00 this morning, hitting a low of US$2,859, the lowest since July 8. It was trading at US$2,902 at the time of writing in the past 24 hours. It fell 0.98%, and the decline reached 10.7% in the past seven days.
CoinMarkeCap data shows that the other top ten tokens have experienced mixed gains and losses in the past 24 hours. The largest increase was ADA, reaching 0.83%, and the largest decrease was SOL, which fell 5.4% and is now at $143.34.
The entire network liquidated US$190 million in the past 24 hours
According to data from Coinglass, in the past 24 hours, the liquidation amount of cryptocurrency across the entire network reached US$190 million, of which long positions were liquidated at US$152 million, short positions were liquidated at only US$38.72 million, and a total of 74,253 people were liquidated.
