📉 Market volatility and changes in sentiment
On Monday morning, the crypto market gave investors quite a shock. Bitcoin plummeted in just one hour, dropping from over $90,000 to around $87,000, and Ethereum also weakened, sliding to about $2,800.
The liquidation numbers are equally shocking. Coinglass statistics show that over $400 million was liquidated in a short period, and most of it was from long positions. Market sentiment has clearly shifted to panic.
From a technical perspective, last month's closing performance was poor, which has raised concerns that the bull market rhythm may be disrupted. Although this wave of decline was not triggered by a specific event, macroeconomic uncertainty and changes in capital flows seem to constitute the main pressure. Even the probability on Polymarket of Bitcoin returning to $100,000 by the end of next year has declined.
📈 Controversy over Ethereum's valuation.
Many analysts believe that the current Ethereum price is below its fair valuation. Most models estimate the reasonable range to be above four thousand dollars, but the market has consistently kept it below three thousand. This price gap makes it feel like the entire asset is being overlooked.
🇨🇳 China's regulations are tightening again.
The Chinese government recently held a meeting, explicitly listing stablecoins as illegal financial activities for the first time in formal documents, emphasizing that such tokens do not have any legal payment efficacy. Those who previously hoped for a loosening of policies can now be sure that their hopes have been dashed. This statement effectively seals off the gray area of related businesses completely.
🏢 Industry news and company updates.
The CEO of Tether recently responded strongly to external criticism. He countered Wall Street rating agencies' classification of USDT as junk grade and refuted Arthur Hayes' claims regarding reserve insufficiency. He emphasized that Tether's reserves are transparent and reliable.
At the same time, MicroStrategy clarified that it has not sold any Bitcoin. Saylor further revealed that they will announce a new round of purchase plans later today or tomorrow, which many investors are looking forward to.
🛡️ Security risks are escalating again.
Regarding this year's on-chain criminal activities, the report pointed out that hackers related to North Korea have stolen over two billion dollars, with methods increasingly focused on social engineering, no longer just targeting infrastructure.
Additionally, a16z also reminded the industry that there has been an increase in kidnapping incidents targeting people in the crypto sphere, urging practitioners to raise their vigilance in real life.
💡 Today's observations.
Overall, the market atmosphere leans towards conservatism. The sharp drop in Bitcoin has disrupted the rhythm, and China's policies have cast a shadow over the capital side. What is worth paying attention to next is whether MicroStrategy will present advantages to stabilize emotions, and whether Ethereum can regain its footing in the undervalued range.
