Bitcoin once fell below $44,000, and 110,000 people were liquidated in 24 hours

Previously, Bitcoin once rose above the $58,000 mark, and then Bitcoin experienced its biggest weekly drop in nearly a year. Last week, Bitcoin once fell below $44,000 per coin. It is worth noting that the drop last week exceeded 22%.

As of now, Bitcoin has returned above $450,000, temporarily reporting $45,237.8, up 0.5%.
As Bitcoin fluctuates back and forth, according to trading data from Bitcoin Home Network, the amount of Bitcoin liquidated in 24 hours reached US$871 million (approximately RMB 5.645 billion), and 114,754 investors were liquidated.

The data also shows that 53.13% of people hold long positions, and nearly half of investors hold short positions (46.87%).

A relevant person in charge of OKLink Research Institute said that in the previous economic environment of high inflation and low growth, investors' demand for hoarding cash naturally evolved into demand for gold and Bitcoin, which led to the bull market of Bitcoin. This round of Bitcoin's sudden turn from bull to bear is also closely related to this. "With the global economic recovery, the market's expectations for the central bank to tighten monetary circulation are getting higher and higher, and investors began to sell overvalued Bitcoin, causing the price of Bitcoin to plummet."
Du Jun, co-founder of Huobi Group, told reporters that the correlation between Bitcoin's trend and traditional capital markets is gradually increasing. As global markets have experienced varying degrees of correction, Bitcoin has also fallen, further causing panic selling.
It is worth mentioning that the Bitcoin crash is also related to Tesla CEO Elon Musk. On February 26, it was reported that the U.S. Securities and Exchange Commission (SEC) was intervening and investigating whether Musk's tweets about cryptocurrency violated regulations. In January this year, Musk said he would not refuse to accept Bitcoin payments; in early February, Musk said that Bitcoin was about to be widely accepted. In addition, Tesla disclosed in a document submitted to the U.S. Securities and Exchange Commission that the company had purchased $1.5 billion worth of Bitcoin.
According to CCTV Finance, although the price of Bitcoin plummeted last week, it has still maintained an increase of more than 60% this year due to the attention of well-known investors, banks and large companies.
Investors who are bullish on Bitcoin believe that cryptocurrencies are the best value-preserving investment and an excellent tool to hedge against inflation, but at the same time, some analysts insist that the bubble of cryptocurrencies is about to burst. Bitcoin has also become one of the focuses of global media attention this week.
Fortune magazine reported that Bitcoin is not an excellent hedge against inflation. In the long run, there has never been any consistent relationship between the rise and fall of Bitcoin and the expected value of inflation.
An article in the Financial Times pointed out that the hot Bitcoin is also a "fire alarm" for the US dollar. As a virtual currency that exists entirely in digital form, the high price of Bitcoin is another objective manifestation of asset bubbles.
The volatility of the cryptocurrency market is getting bigger and bigger, and the investment risk is also getting higher and higher, but many people are going for the high volatility. Lan Shao, a big V in the cryptocurrency circle, said that the stories of getting rich in the cryptocurrency circle are all untrue, and only a very small number of people can really make money. The high volatility of the cryptocurrency circle can double overnight - 2 times, 3 times, 4 times or even 10 times, 100 times. What they want is this feeling of getting rich, but the final result is that they lose everything. If they leave this circle, they can only survive in this circle by holding Bitcoin steadily and not touching leverage. "We have been here since 2013, and there are too many people around us who play with leverage. Some people used to have book assets of tens of millions or even hundreds of millions, but they disappeared while playing."
Industry analysts said that as more and more people believe that Bitcoin will grow wildly and make money, the risks will also be greater. At this time, Bitcoin is more like a hype, similar to the principle of passing the parcel. Participants know the rules of the game, but no one wants to be the last person to pass the parcel, become a loser or close the position. "Everyone should make a choice based on their own strength and ability, rather than chasing the rise and fall, and betting on short-term high returns."