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The cryptocurrency market has experienced a recent bout of volatility, with overall prices showing a fluctuating downward trend. On March 17th, many cryptocurrencies suddenly plunged, breaking the previous upward momentum. Especially notable was Bitcoin, which briefly fell below the $65,000 mark and is currently hovering around this price range. By 5 p.m., Bitcoin was quoted at $66,400, with a price decrease of 3.31% over the past 24 hours, and a weekly decline of 4.38%.
Among the top 20 cryptocurrencies by market capitalization, without exception, there has been a decline in prices. Ethereum (ETH) was not spared either, with its price dropping below $4,000 to $3,575.05, marking a 4.16% decrease in the last 24 hours and a significant 9.93% decrease over the week. Binance Coin (BNB) was priced at $575.08, with a 6.45% decrease in the last 24 hours, although it maintained an upward trend over the week, with a 10.71% increase.
This downturn has put nearly 200,000 investors at risk of liquidation. According to CoinGlass data, a total of 196,400 people were liquidated in the past 24 hours, with a total amount of up to $645 million. Liquidation occurs when a trader's position incurs excessive losses or their funds are insufficient to maintain margin requirements, resulting in the forced closure of their positions, potentially leading to significant financial losses for the trader.
A recent report from JPMorgan Chase has also sparked concerns in the market. The report indicates that the Bitcoin halving event in April could severely impact the profitability of Bitcoin miners and warns that the Bitcoin price may drop to $42,000 as a result.
However, despite the turmoil in the spot market, the Bitcoin spot ETF market has demonstrated strong fundraising capabilities. In early January of this year, the US regulatory agency SEC approved the listing of 10 spot Bitcoin exchange-traded funds (ETFs), attracting participation from large investment companies such as Blackrock, Fidelity, and Grayscale. The performance of these ETFs has been quite impressive, with total trading volume, market capitalization, and total assets under management reaching significant levels.
Since their listing, inflows into Bitcoin ETFs have continued to reach new highs, with a total inflow of $12.16 billion in just two months. Especially on March 12th, the daily inflow of funds into 10 Bitcoin spot ETFs exceeded $1 billion for the first time, setting a new record. Some analysts suggest that if this pace continues, market demand for Bitcoin may exceed supply, potentially triggering a seller liquidity crisis and pushing the Bitcoin price beyond expectations.
However, some analysts also caution that cryptocurrencies themselves are highly volatile, and the entry of large institutional investors may tilt the balance of cryptocurrency prices, exacerbating the investment risks for ordinary investors entering the market during a bubble. Investors should exercise caution and approach price fluctuations rationally when participating in the cryptocurrency market.
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Post time 26-3-2024 07:44:37