"Ethereum led a group of younger brothers (altcoins) to plummet today..." Many people in the currency circle said with emotion.On June 12, the prices of many virtual currencies reappeared in avalanches. Among them, the mainstream currency Ethereum saw a decline of 13% in the day and 42% in the year, which triggered a new round of panic in the currency circle. Is the big bear market coming?
|Avalanche|
Ethereum fell more than 42% this year
The currency circle has been on a downward trend in recent days.At 10:40 a.m. on June 12, a reporter from Beijing Business Daily noticed that Bitcoin fell by 4.57% during the day and was quoted at US$27,875. Ethereum plummeted by 12.09% to US$1,468, falling to a new low for the year, as well as BNB, ADA, and XRP. , SOL, DOT and many other currencies have fallen by more than 10% in the past 24 hours.
The decline continues.At 16:40 on the same day, a reporter from Beijing Business Daily found that the decline of many currencies was still further expanding. For example, Ethereum dropped to a minimum of $1,430 that day, a 24-hour drop of 13% and an annual drop of more than 42%; Bitcoin was not spared either. , the price fell to $27,617, an annual drop of 25%; there were also some altcoins and exchange platform coins, which fell all the way from the previous $30 to $1, showing a trend of returning to zero...
Regarding the new round of decline in the currency circle, Pan Helin, co-director and researcher of the Digital Economy and Financial Innovation Research Center of Zhejiang University International Business School, told the Beijing Business Daily reporter that virtual currency prices have plummeted collectively, mainly because these themselves are risk assets. Against the background of the Fed raising interest rates, the appreciation of the US dollar has increased the pressure on the depreciation of risk assets, so the current virtual currency is in a new round of decline.In his opinion, it is not easy to judge whether the follow-up virtual currency will eventually return to zero. It mainly depends on the value squeeze of the strong dollar against the virtual currency. A decline in liquidity is also inevitable.
"This round of decline should be seen in the context." Cai Kailong, a financial technology research expert, added that in the long run, it was because of the Fed raising interest rates and shrinking the balance sheet. Problems with the liquidity of the token stETH.
Cai Kailong explained with an analogy, "The Fed's rate hike and balance sheet reduction can be seen as the plate movement of the earth's crust. Although it can't be seen with the naked eye, the general trend is obvious, and the LUNA/UST explosion is the stratum caused by the continuous extrusion of the plate. The sudden rupture caused a big earthquake, and the recent short-term cause of stETH liquidity is the aftershock after the big earthquake. These falling factors show that virtual currencies are not always rising, and there will be huge market risks.”
|Various states|
Institutions push the "money-making artifact" against the wind
Judging from the recent discussion of currency people, a new round of slumps has fallen, and some people who are trapped have gradually died down, waiting for the next round of gains, but there are also novice Xiaobai who entered the market with the intention of buying the bottom, but they still became a new crop of leeks...
"I've been staring at Ethereum and Bitcoin for a long time, and I've been waiting for the fall." On June 12, Liu Li (pseudonym), who claimed to be a coin speculator, told the Beijing Business Daily reporter that although he was not familiar with the currency market, he Many of my friends are veterans of coin speculation, and some even quit their original jobs to analyze the market and speculate coins. "Money comes really fast, and after a day's operation, I can make more money than me 'moving bricks' in a year."
Liu Li said that he had been waiting for an opportunity, but what he did not expect was that he would pay the "tuition fee" in less than 5 minutes.He told a reporter from Beijing Business Daily that on the morning of June 12, after he found that Ethereum had been falling all the way, he hurriedly used the 10,000 yuan he had prepared earlier to buy it. Fang fell all the way to $1,430, "I regret it after buying it, I didn't expect to be caught so quickly!" Liu Li said helplessly.
In fact, Liu Li is just a microcosm of many Xiaobai.The reporter of Beijing Business Daily noticed that there are many novice in the currency circle, who are all looking at the increase and "wealth" of the currency circle, but they ignore the huge risks and costs behind it.And many so-called experts and institutions in the currency circle took advantage of this and ran rampant in the market.
"Chong! Another short-term call" "Ethereum plummeted again, we lost a lot of money and got out of the game with a backhand, and we can get back a game, only if we give up!"On the day when the market fell sharply on June 12, reporters from Beijing Business Daily found on multiple platforms that many self-proclaimed currency analysts and market experts took advantage of the plummeting Ethereum to reveal their operations and earnings to encourage them. The novice in the currency circle copied orders to speculate on coins and even opened leveraged contracts to trade.
At the institutional level, there are also many exchanges that take advantage of the chaos and launch the so-called "zero-cost contract trading", which claims to receive 500U upon registration, encouraging newcomers to enter the market to start contract trading, but they do not mention operational risks at all; there are also platforms that launch Quantitative tools, claiming to be the most profitable artifact in the bear market, can realize 7 × 24 hours of automatic trading, and one-click earning, but the reporter of Beijing Business Daily clicked on the details and found that behind it, there are still high levels of “opening shorts” and “opening longs”. Risky speculation.
The so-called contract trading is actually a model of forward trading of the traded products. Investors can obtain the income generated by the rise and fall of the "underlying" price by buying long contracts or selling short contracts.For example, when you are bullish on Bitcoin and go long, the price rises will bring profit, and the fall will bring loss; conversely, when you are bearish on Bitcoin and go short, the price will rise but will bring loss, and the fall will bring profit.
However, it should be noted that in the volatile market of virtual currency, using high-leverage contracts to try to use small and large-scale behavior is actually a knife-edge gambling business. A little careless use of leverage can lead to the risk of liquidation.Just at 17:40 on June 12, the Feixiaohao market showed that more than 100,000 people had liquidated their positions in the past 24 hours, and the liquidation amount was as high as 44 billion yuan, of which 88.89% were long orders.
Cai Kailong told the Beijing Business Daily reporter that the public business of these exchanges or other institutions in China is actually illegal and illegal, and they are illegal financing, and some even have the possibility of pyramid schemes or fraud.Among them, investors who do not know the truth expect high registration fees or promised high returns, while illegal institutions are staring at the principal of the "leeks".He further emphasized that "these chaos has recently spread to NFT, Metaverse and Web 3.0, and we have to be vigilant."
|Warning|
Do not engage in illegal financial activities
Market chaos is frequent, and supervision is also further reminding and cracking down.
On the evening of June 11, Shenzhen Economic Investigation issued a new round of risk warnings. With the popularity of virtual currency and the market, some lawbreakers are eyeing this "rich mine", and many people are attracted by the so-called high profits. .
"For example, there are many criminals now advocating the bright prospects of certain coins and promising unrealistically high returns, but in fact, these are just a series of numbers manipulated in the backstage. The transaction price is quickly cashed out, and some are exploited layer by layer by establishing a pyramid selling organization and collecting membership fees. When the funding chain of a pyramid selling project breaks, the first victims are ordinary coin speculators.” Shenzhen Economic Investigator reminded that we must be careful about virtual currency. Stay vigilant and invest prudently.Virtual currency-related business is an illegal financial activity, and no organization or individual should be involved in it.
Ganzhou Internet Police Inspection and Law Enforcement also emphasized that virtual currency does not have the same legal status as legal tender, and cannot be used as currency in the market. Criminal activities such as money laundering and gambling implemented by virtual currency, and illegal fund-raising, pyramid selling and other criminal activities using virtual currency as a gimmick.
"Virtual currency is prohibited in China, and virtual currency cannot be circulated in the secondary market, even if it is a digital collection. Therefore, these currency circle behaviors themselves are illegal." Pan Helin said that it is very important for the country to clarify its regulatory attitude. Follow-up governance It is necessary to strictly control financial institutions not to participate in virtual currency speculation, not to provide payment channels, and the law should also clarify that secondary market transactions are not protected, and demonstrate a regulatory attitude to participants.
Cai Kailong further suggested that the supervision has always maintained a high-pressure rectification attitude towards the currency circle institutions, but it must also keep pace with the times.It is necessary to prevent and suppress illegal acts in the name of new concepts and gimmicks such as NFT, Metaverse, and Web3.0 in a timely manner.At the same time, there should be a lot of publicity and investor education.
"We often hear that 'the stock market is risky, and you need to be cautious when entering the market'. This is in the stock market, a relatively well-regulated and mature market, and it has its risks. For the currency circle, this risk range is amplified several times. , in addition to the recent drastic price fluctuation risks in the market, there are also compliance risks such as violations of laws and regulations, pyramid schemes, or platform operation risks, as well as hackers stealing coins, operational errors, etc. Therefore, for newcomers, it is even more important to Remember that the currency circle has high risks and avoid entering the market." Cai Kailong said.
Beijing Business Daily reporter Liu Sihong
