Bitcoin Plunges Over 2%: Over 148,000 Liquidations, Miner Revenue Plummets, Regulatory Risks Intensify

Bitcoin Plunges Over 2%: Over 148,000 Liquidations, Miner Revenue Plummets, Regulatory Risks IntensifyOn October 26, the cryptocurrency market experienced a sharp decline, with Bitcoin leading the fall, dropping nearly 4% at one point before settling at a 2.29% loss

Bitcoin Plunges Over 2%: Over 148,000 Liquidations, Miner Revenue Plummets, Regulatory Risks Intensify

On October 26, the cryptocurrency market experienced a sharp decline, with Bitcoin leading the fall, dropping nearly 4% at one point before settling at a 2.29% loss. Ethereum fell by 3.83%, while Dogecoin plummeted over 7.85%. According to Coinglass data, over 148,000 individuals liquidated their positions in the past 24 hours, totaling $408 million (approximately 2.9 billion yuan).

CME Bitcoin futures also suffered, dropping 2.30% from Thursday's New York close, marking a cumulative decline of 3.09% for the week. Additionally, US stocks linked to cryptocurrencies experienced a collective slump, with MARA Holdings plunging as much as 7% and Riot Platforms dropping over 5%.

The cryptocurrency turmoil is not solely reflected in price fluctuations but also in the changing revenue of miners. Since the Bitcoin halving in April, miner income has significantly decreased. Before the halving, Bitcoin's daily output revolved around the block reward system, averaging 6.25 Bitcoin every 10 minutes, translating to approximately 900 Bitcoin per day. Following the halving, output has reduced to about 450 Bitcoin daily. Despite the current Bitcoin price being comparable to pre-halving levels, miner output has halved, leading to an anticipated loss of nearly $10 billion in revenue for the entire mining industry within a year after the halving.

Regulatory risks surrounding cryptocurrencies are also intensifying. OEXN platform points out that Bitcoin's impact on government fiscal policies is escalating, prompting the need for considerations like imposing taxes on BTC or prohibiting its usage to mitigate risks to the sustainability of national budgets.

Global regulatory stances and policies toward cryptocurrencies are continuously evolving. Yu Jianing, co-chair of the Blockchain Committee of the China Communications Industry Association and honorary chairman of the Hong Kong Blockchain Association, underscores that any new regulatory measures could have a considerable impact on Bitcoin prices.

Aside from regulatory risks, changes in the global macroeconomic environment, such as interest rate shifts, inflation rates, and international trade relations, can also influence the value of Bitcoin and other cryptocurrencies. Furthermore, current cryptocurrency trading platforms and wallets continue to face risks associated with hacking attacks and security vulnerabilities.

In conclusion, the price fluctuations of Bitcoin and other cryptocurrencies are driven by multiple factors, including market sentiment, macroeconomic conditions, technological innovations, and regulatory policies. Investors should exercise caution when investing in cryptocurrencies and implement robust risk management measures.

Disclaimer: The information and data provided in this article are for reference only and do not constitute investment advice. Please verify before use. Use at your own risk.