The Cryptocurrency Market Bleeds Again: 100,000 Liquidated, Bitcoin Plunges Below $68,000

The Cryptocurrency Market Bleeds Again: 100,000 Liquidated, Bitcoin Plunges Below $68,000The cryptocurrency market has once again plunged into a state of bloodbath. Data from Coinglass website shows that Bitcoin fell below $68,000 yesterday, and over 100,000 traders were liquidated in the cryptocurrency market over the weekend

The Cryptocurrency Market Bleeds Again: 100,000 Liquidated, Bitcoin Plunges Below $68,000

The cryptocurrency market has once again plunged into a state of bloodbath. Data from Coinglass website shows that Bitcoin fell below $68,000 yesterday, and over 100,000 traders were liquidated in the cryptocurrency market over the weekend.

On October 29, Bitcoin surged to a high of nearly $74,000 per coin, but then began to pull back. At the time, analysts pointed out that the strong rise in cryptocurrencies was related to multiple news stimuli. Among them, Trump's polls overtaking Harris was considered the biggest catalyst.

Sean Farrell, head of digital asset strategy at Fundstrat Global Advisors LLC, wrote in a report that Trump's "momentum leading up to the election and potential for reduced risk" may have been the reason for Bitcoin's retest of the $70,000 level.

However, market sentiment can change in an instant. After a brief period of exuberance, the cryptocurrency market has plunged back into a correction. What exactly caused this crash?

Analysts point to the following factors as possible main causes of the market decline:

• Increased Regulatory Risk: In recent years, governments around the world have stepped up their regulation of cryptocurrencies, creating uncertainty in the market. Recently, the US government's regulatory measures against cryptocurrency exchanges, as well as China's crackdown on cryptocurrency trading, have exacerbated market concerns about regulatory risk.

• Shifting Macroeconomic Environment: Uncertainty over the global economic recovery, as well as inflationary pressures, have also put pressure on the cryptocurrency market. Investors fear that as the economic environment changes, the investment value of cryptocurrencies may decline.

• Market Sentiment Fluctuations: The cryptocurrency market is a highly speculative market with high volatility in market sentiment. Recent negative news, such as Tesla CEO Elon Musk's negative comments about cryptocurrencies and negative events in some cryptocurrency projects, have fueled market panic.

Future Outlook:

Market participants generally believe that the cryptocurrency market will continue to face some volatility in the short term. Investors need to invest cautiously and avoid chasing gains or selling at a loss.

Conclusion:

The development of the cryptocurrency market is full of variables. Investors need to stay rational, invest prudently, and not be swayed by market sentiment.