Crypto Market Plunges Again, Liquidations Exceed $177 Million in a Single Day

Crypto Market Plunges Again, Liquidations Exceed $177 Million in a Single DayOn August 12th (Beijing time), the cryptocurrency market suffered another significant decline, with Bitcoin falling below $59,000, losing over 4%. Ethereum also dipped below $2600, and major cryptocurrencies like Dogecoin and Cardano followed suit

Crypto Market Plunges Again, Liquidations Exceed $177 Million in a Single Day

On August 12th (Beijing time), the cryptocurrency market suffered another significant decline, with Bitcoin falling below $59,000, losing over 4%. Ethereum also dipped below $2600, and major cryptocurrencies like Dogecoin and Cardano followed suit.

According to Coinglass data, over the past 24 hours, the crypto market saw 68,800 liquidations, totaling $177 million (approximately 1.271 billion yuan), with long positions accounting for $130 million and short positions for $42.869 million.

It is worth noting that the crypto market has been experiencing a prolonged downturn recently, with a clear outflow of funds. Despite a general recovery in the global stock market, capital is quietly leaving the cryptocurrency market. Data shows that on August 9th, Bitcoin ETFs and Ethereum ETFs experienced outflows of $89 million and $15.7 million, respectively.

Besides the outflow of funds from the market, cryptocurrency miners earnings have also been declining. A research report by Guotai Junan Securities shows that in July, Bitcoin miners' income reached $950 million, a decrease of 1.2% month-on-month. Meanwhile, Bitcoin mining company Riot Platforms reported a net loss of $84.4 million in the second quarter, with Bitcoin production declining by 52%.

Multiple Factors Contribute to Market Decline

The recent decline in the cryptocurrency market is primarily driven by a combination of factors, including:

• Increased Uncertainty in Global Economic Outlook: The Russia-Ukraine conflict, soaring inflation, and anticipated interest rate hikes have created uncertainty in the global economy, leading to decreased risk appetite among investors and causing capital to flow out of risk assets.

• Tightening Regulatory Policies: Governments worldwide are stepping up their regulation of cryptocurrencies, which has also negatively impacted market sentiment.

• Low Market Sentiment: A series of negative news and events, such as the collapse of the Terra ecosystem, the bankruptcy of Celsius Network, etc., have dampened market sentiment, leading to a lack of investor confidence.

Future Trajectory Remains Uncertain

While the cryptocurrency market has been experiencing a protracted slump recently, its future trajectory remains uncertain. Investors need to closely monitor the following factors:

• Macroeconomic Policies: Changes in central bank monetary policy, inflation levels, and economic growth expectations will have a significant impact on the cryptocurrency market.

• Regulatory Policies: Changes in cryptocurrency regulation by governments will directly influence market sentiment and development direction.

• Technological Advancements: Development and application of blockchain technology, as well as the emergence of new cryptocurrency projects, could create new opportunities for the market.

Investors Should Invest Cautiously and Implement Risk Control Measures

The cryptocurrency market is highly volatile, and investment carries a high level of risk. Before investing, investors should fully understand market risks, invest rationally, and implement appropriate risk control measures.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should make investment decisions based on their own circumstances and assume corresponding risks.