Sleepless Night in Crypto Coin Circle: 770,000 Investors in Liquidation

 How does the Bitcoin market go? At present, pessimism in the market has the upper hand. Ipek Ozkardeskaya, a senior analyst at Swissquote, said that as Bitcoin falls below the 200-day moving average, there will be more risks in the future.

The crypto coin circle had no sleep all night. According to the latest data of bybt, in the last 24 hours, a total of about 775,700 investors have become victims of liquidation in China. The largest single liquidation order occurred in Huobi-BTC, valued as high as US$67,001 million. On the evening of May 19, the ranking of the "coin circle collapse" jumped to the third place on the Weibo hot search list. Prior to this, the China Internet Finance Association and other three associations jointly issued an announcement to remind the risk of speculation in crypto coin transactions.

Prices Plummeting of Crypto Coins

On the morning of May 19, the price of Bitcoin dropped sharply. As of 11:07, the price of Bitcoin had fallen by 10.73%, which was only a gap of more than $200 from 40,000 USD per coin. You know, in April this year, the price of Bitcoin At one time, it exceeded 60,000 US dollars/piece; at the same time, the price of Ethereum also fell by 8.75%, and the price was close to 3,000 US dollars/piece. Just a week ago, its price once exceeded 4,000 US dollars/piece.

However, this was just the beginning of the "nightmare". By noon on the 19th, the price of Bitcoin fell below $40,000 per coin. After 8:30 in the evening, the price of Bitcoin dropped in a free fall, with the lowest price in 24 hours. 31,100 US dollars per piece, which has been "cut in half" compared to the highest point this year. As of 23:18 on the 19th, the price of Bitcoin has rebounded to 36,900 US dollars per coin, down 15.33%.

Other crypto coins were not spared either. The price of Ethereum plummeted by 21.02% to US$2,657 per coin, and Binance Coin fell by 28% to US$367 per coin. The previous hot Dogecoin was not spared and fell. 23.79%.

Bitcoin price rides a roller coaster due to Musk's Fickle attitude

 In several recent tweets, Musk released news about Tesla's bitcoin holdings, which triggered investors to engage in crazy bitcoin transactions during the trading hours, first shorting, and then turning to buy up.

The reason is that Musk hinted in a tweet that Tesla may have sold or partially sold its bitcoin holdings; later he clarified in another tweet that Tesla did not sell bitcoin.

Musk’s tweet directly led to Bitcoin’s flash crash of over 9% on May 17, hitting its lowest point since February 9, and then rising by more than 5%.

Although Musk's enthusiasm for speculating coins once pushed up the cryptocurrency market, his recent "cold" attitude towards Bitcoin and Dogecoin has disrupted trading in the currency circle.

Earlier, Musk had tweeted that out of environmental considerations, Bitcoin would cease to be used as a payment method for Tesla vehicles, causing Bitcoin's market value to evaporate by a quarter.

Musk has repeatedly changed his face. Bitcoin prices are on a roller coaster. Click on the video to see what it is!

Currency war behind chip supply cut: Bitcoin's attack on finance and industry

 A hot virtual currency "digital game" is impacting the financial order and industrial resources in the real world.

In the past few days, the prices of Bitcoin and other virtual currencies have soared and plummeted. At the same time, following the introduction of OTC trading and futures contract trading product services by virtual currency exchanges, various so-called "financial management", "lending" and "fixed income" products around virtual currencies have also continued to emerge. These are similar to traditional finance but are not The virtual currency "financial services" provided by licensed institutions are unprecedentedly popular.

In addition, "mining", the original method of directly obtaining virtual currency, has also become the focus again. In the past few years, the “mining machines” that have been closed in the bear market have turned into sweet pastries again, and some A-share listed companies have invested tens of millions of dollars to deploy the coin mining market. Under the competition for computing power between major mining pools (collection of computing power) and mining farms (collection of hardware equipment), not only chips, hard disks, graphics cards and other resources are quickly swallowed up, but also power resources such as firepower and water power in various places are also annihilated. In the sound of the rumbling of the mining machine.

An "involved" coin mining market is having a serious impact on the real world...

Crazy hype: The virtual currency expands wildly

The "rise" of financial derivatives in the currency circle began with the upsurge of opening virtual currency exchanges around 2015. The virtual currency-related derivatives launched by virtual currency exchanges mainly use futures-like contract trading methods to go long or short virtual currencies and other virtual currencies.

What are the frontiers and future trends of Bitcoin, Ethereum, and blockchain?

As the discussion of whether Ethereum (ETH) will replace Bitcoin (BTC) as the leading cryptocurrency  becomes hot part of the daily cryptocurrency conversation, we need to ask a question,  what the difference between Ethereum and Bitcoin imply for the future application of blockchain and encryption?

Bitcoin and Ethereum

Since blockchain and cryptocurrency have actually become part of the financial market, Bitcoin has always been the market leader, the initiator of dialogue, and the dominant force measured by any standard.

Given that the market value of Bitcoin has exceeded $1 trillion, well-known companies such as Tesla have also made major acquisitions, and major payment applications have also begun to support Bitcoin payments, so is it reasonable to conclude that Bitcoin's dominance is almost certain.

However, on the other hand, the valuation of Ethereum and the applications developed based on the Ethereum blockchain are rising rapidly. If you put aside the attention to prices that attract market analysts and participants every day, Ethereum and the Ethereum blockchain are indeed the protagonists in the second half of 2020 and 2021.

In addition to the current price increase of the Ethereum token, many blockchain applications that have attracted the attention of the mass market have been developed and run on the Ethereum blockchain.

Although Bitcoin has been leading the wider attention, there is a phenomenon that can be proved, in terms of applications and use cases, Ethereum will lead the next stage of blockchain development. In other words, in the financial market dialogue, it seems that for the first time there will be open competition to determine which protocols and cryptocurrencies will lead the industry forward. Let us analyze some basic factors that the market needs to evaluate in the future.

New Technology to Watch amid Bitcoin's Price Rising and Chip Shortage

 Following the previous round of sharp decline, the price of Bitcoin ushered in a sustained surge. Previously, economist Alex de Vries mentioned in Joule that the soaring price of Bitcoin may increase energy consumption and lead to further global chip shortages.

Alex de Vries believes that Bitcoin "mining" can be understood as the process of harvesting cryptocurrency by solving complex mathematical equations. As long as it is a networked computer, you can participate in "mining", but the success depends on the computing power of the equipment and the cost of electricity. As everyone is optimistic about the Bitcoin market, more and more people join "mining". It is estimated that starting from January 11, 2021, the number of times that all "mining" equipment solves this equation per second adds up to more than 150 million to the fifth power, which will greatly consume electricity and other energy.

Previous statistics have shown that "mining" has accounted for 0.13% of global electricity consumption. 80% of the total expenditures of cryptocurrency miners around the world are spent on electricity costs. Alex de Vries believes that based on the Bitcoin market in January, the entire Bitcoin network may consume up to 184 TWh (1 TWh ≈ 1 billion kWh) of energy each year, which is equivalent to the total energy consumption of all data centers in the world. quantity. At the same time, the energy consumed by "mining" also produced 90.2 million tons of carbon dioxide, which is a huge energy consumption.