More than 80,000 people were liquidated. Bitcoin dropped to $66,830 this morning. Three reasons for the crypto crash

The rapid upward trend of the previous period has ended, and in recent days, a number of virtual assets including Bitcoin have encountered a plunge. At the end of October, Bitcoin once reached a high of over $73,620, but has retreated again since November, successively breaking through the $73,000, $70,000, and $68,000 marks, with the lowest point falling below $67,000 in the early hours of today, reaching $66,800. As of the time of writing, the latest price of Bitcoin is reported at $68,000, a 24-hour decline of 1%. Under the plunge of Bitcoin, other cryptocurrencies in the virtual asset market have also not been spared. Among them, Ethereum fell to a low of $2,357, and SOL fell to a low of $155, but have since rebounded. According to Coinglass data, in the past 24 hours, more than 80,000 people have been liquidated across the network, with a total liquidation amount of $211 million. Despite the continued bearish momentum in the short term, three Bitcoin derivative indicators show that the market is not in a state of panic. These positive indicators include the long-short ratio of top traders on exchanges, the total open interest of BTC futures, and the demand for stablecoins in China. Investors are still increasing their leveraged positions. Currently, the open interest of BTC contracts is 582,000, on par with the previous week and 10% higher than the level on October 4. This indicates that despite the recent uncertainty and price corrections, investors are still increasing their leveraged positions. Combined with the long-short data of top traders, this suggests that there is still a moderate bullish sentiment, even after Bitcoin soared above $73,500 on October 29. In China, traders have shown resilience, with the trading price of the USD Tether stablecoin close to its fair value relative to the official USD/CNY exchange rate. During periods of strong demand for cryptocurrency outflows, the USDT trading premium is usually 2% or higher. Overall, the derivative indicators do not show any signs of pressure, and traders seem to believe that the bull market will resume after the US presidential election. The uncertain stance of Kamala Harris on cryptocurrencies "sows the seeds of uncertainty", and "uncertainty may be worse than opposition". Even if Harris's policies ultimately benefit the industry, they are unlikely to be consistent with the promises of the Republican candidate, former President Donald Trump. Trump hinted at firing the chairman of the US Securities and Exchange Commission, Gary Gensler, on "the first day", but his specific plans to encourage Bitcoin adoption remain unclear. The speed of major changes in government agencies and the US Treasury Department is also controversial. Therefore, regardless of the outcome of the US presidential election, investors believe that the momentum to push Bitcoin prices to new highs is limited. The main reason for the expectation difference in the US presidential election is people's focus on "digital assets", including central bank digital currencies (CBDCs) and tokenized assets, which are fundamentally different from and largely unrelated to Bitcoin. The digitization of real-world assets using blockchain technology has a minimal impact on the overall demand for Bitcoin.