Not only that, but other major cryptocurrencies also plummeted, with Ethereum and letcoin falling by more than 10%, while the newly emerging tokens XRP and TRX plummeted by nearly 20%.
The sharp fall in bitcoin prices also led to a large explosion of leveraged traders. According to Wall Street reports, traders who borrowed money to buy bitcoin have sold $367 million (about 2.5 billion yuan) in nearly an hour.
During the year, it soared 517%
Market analysts believe that since the outbreak of the epidemic, the unprecedented water release measures of the US Federal Reserve have made the US dollar weaken all the way, and bitcoin, as a means of fighting against devaluation, is once again sought after by the market; at the same time, as the output of bitcoin was halved for the third time in May this year, further pushing up the price.
Why did it plummet?
On November 25, bitcoin prices rose to around $19000, a three-year high.
Just as bitcoin approached its all-time high of $19821 in 2017, there were market rumors that the US Treasury planned to track the owners of autonomous cryptocurrency wallets.
The news seems to have triggered a collective sell-off of autonomous cryptocurrencies.
The CEO of coinbase revealed that in addition to the US Treasurys enhanced regulation of cryptocurrencies, the trading platform has also begun to prevent customers from making new margin trading, cancel all open limit orders and completely terminate margin trading next month. The move triggered further panic in the market.
Kelly cited three possible reasons for the short-term bitcoin pullback: the surge in counterfeit currency, the growth of address number and the over pricing of bitcoin, and the high capital rate.
Ki youngju, chief executive of cryptoquant, also said that this is an adjustment before bitcoin broke through $20000, but other long-term distribution indicators such as bitcoin and stable currency reserve show that potential purchasing pressure is still widespread so far.
According to bybt, a derivatives data provider, the crash cleared $950 million of positions on major exchanges.
Bitcoin has experienced 11 falls
It is worth noting that bitcoin has always been crazy to rise and even more crazy to fall.
However, in the past few rounds of bitcoin slump, the crackdown by governments of various countries often causes fatal damage to the price of bitcoin. Supporters of bitcoin say the focus on cryptocurrencies is different from the slump three years ago, because of growing interest from institutional investors such as fidelity and JPMorgan Chase. Source: Chen Hequn, editor in charge of China fund daily_ NB12679
However, in the past few rounds of bitcoin slump, the crackdown by governments of various countries often causes fatal damage to the price of bitcoin.
Supporters of bitcoin say the focus on cryptocurrencies is different from the slump three years ago, because of growing interest from institutional investors such as fidelity and JPMorgan Chase.