Bitcoin suddenly dropped sharply, with the price falling directly below $92,000, a drop of more than 4% in 24 hours. Ethereum was even worse, with a drop of nearly 10%, resulting in more than 290,000 people losing their investments. There are several key reasons behind this plunge, let me tell you:
First, South Dakota originally had a plan to pass HB 1202, which would allow the state's public funds to invest up to 10% in Bitcoin. However, the bill was postponed due to lack of time, and it was actually scrapped. When this happened, everyone was panicked, worried that other places would tighten their regulations on cryptocurrencies, causing no one to buy Bitcoin all of a sudden.
Furthermore, on the same day, technology stocks and Chinese concept stocks in the US stock market also plummeted. The share prices of large companies such as Tesla and Nvidia fell by more than 2%. Chinese concept stocks were even worse, with the Golden Dragon Index falling by more than 5%, and popular stocks such as Alibaba and Bilibili falling by as much as 10%. As a result, everyone became even more scared and rushed to sell their cryptocurrencies.
From a technical point of view, after Bitcoin fell below the important position of $90,000, various technical indicators became bad. Many people who bought long before are now busy stopping losses. As a result, the amount of liquidation in the crypto market exceeded $850 million, and 310,000 people lost money.
In addition, Bybit exchange was recently hacked and lost $1.5 billion in Ethereum. This incident has made people doubt the security of centralized platforms and lose confidence in leveraged trading. At the same time, the US Securities and Exchange Commission has become more and more strict in its review of altcoins, which has dealt a heavy blow to the speculative atmosphere in the market.
As for the future, I think Bitcoin may continue to fluctuate in the short term to see if it can stabilize at $85,000. If it stabilizes, it may rebound; if it doesn't, it may continue to fall to $80,000. But in the long run, everyone's views on Bitcoin are still different.
As the market continues to change, we must pay close attention to market signals and seize new opportunities to enter the market. Like + leave a message, and we will help you cross the bull market and stand firm in the market to seize this round of great opportunities!
