Over the past 24 hours, the virtual currency market is experiencing an unprecedented upheaval. According to data from British Financial Intelligence, the price of bitcoin continued to fall from a high of more than $60,000, once below $57,000, and as low as $56,750, hitting a new low in more than two months. After briefly recovering to $58,800, the price fell below the $58,000 mark again, showing the huge volatility that the Bitcoin market was experiencing at this time and the panic that was spreading among investors.According to Bitstamp data, bitcoin and Ethereum have both fallen more than 4% in the past 24 hours; Other major cryptocurrencies such as Solana, Ripple, and Dogecoin all fell more than 6%.In the virtual currency market turmoil, CoinGlass data shows that nearly 150,000 people were forced to close their positions, with a total of about $411 million. Among them, the biggest blow occurred in Ethereum.
What's behind the unrest?The virtual currency market is undergoing this great change, some relevant analysts pointed out that it is the inevitable fluctuation caused by the interweaving of multiple negative factors.Eastern time on Wednesday (July 3), the Federal Reserve released the minutes of the June 11-12 Federal Open Market Committee (FOMC) monetary policy meeting. Policymakers say that while inflation is moving in the right direction, it is not moderating fast enough for them to cut interest rates. This news is undoubtedly a negative news for the virtual currency market. The decline in interest rate cut expectations means that the market will maintain high interest rates, funds will return to the traditional financial market, and the virtual currency market will face the pressure of declining demand and capital outflow.
The latest move by Binance, the world's largest cryptocurrency exchange, also had an impact on market sentiment. Binance announced that it will stop trading services for six currency pairs, including BTC/AEUR and ETH/AEUR. Although the company did not disclose the specific reason for the delisting, the news undoubtedly added to the uncertainty in the market. At the same time, Binance has added some new trading pairs to its platform, WIF/BRL, ZK/USDC and ZRO/USDC have been added to Binance Spot. But these services are not available to all customers, further limiting the liquidity of the market.
In addition, the supply of virtual coins in the market is also increasing significantly. According to public information, five new cryptocurrencies will be available for trading in July, which will undoubtedly increase the supply pressure on the market. At the same time, recent "mining" companies are also selling Bitcoin on a large scale, further exacerbating the market's downward trend. According to IntoTheBlock, the number of bitcoins held by "miners" has fallen to its lowest level in 14 years, with "miners" selling more than $2 billion worth of bitcoins in June, the highest level in more than a year.
However, there are some optimistic analysts who believe that this volatility may be part of a market correction, and that the virtual currency market still has great potential for development in the long term. They pointed out that with the continuous progress of technology and the expansion of application scenarios, virtual coins will play a more important role in the future.
In addition, it is worth noting that US Republican presidential candidate Donald Trump expressed strong support for Bitcoin in a post on the Truth Social last month. He acknowledged the geopolitical significance of the world's largest cryptocurrency and warned that any policy that tries to hinder Bitcoin's development will only help its competitors. Trump's announcement not only made him the first candidate from a major political party to endorse Bitcoin, it also put a spotlight on the discussion about classifying bitcoin as a strategic reserve asset.
Purchasing Bitcoin ETFs on uSMART:
uSMART offers a convenient platform for purchasing Bitcoin ETFs. Follow the steps below:
- Open the uSMART app and use the search bar to enter the keyword "Bito."
- Click on "Trading" to access the relevant section.
- Follow the illustrated steps to complete the purchase.
Disclaimers：Investing involves various risks, and the value and returns of securities may fluctuate significantly. Moreover, past performance is not indicative of future results. In particular, trading in virtual assets and virtual asset-related products carries substantial risk and is suitable only for investors with a high risk tolerance and the financial capacity to absorb losses if trades become unprofitable. Indeed, transactions involving virtual assets or related products may lead to significant financial losses. Therefore, it is crucial to assess whether such transactions align with your investment goals, financial situation, risk tolerance, and investment experience. Furthermore, you should be prepared to absorb the full extent of potential losses, including any additional amounts beyond the initial investment, resulting from trading virtual assets or related products. Consequently, when considering participation in such trading or investment activities, it is essential to understand and acknowledge both the general risks involved and any specific risk factors associated with trading virtual assets or related products.
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