Replicating the price trend of 2014? Bitcoin has the biggest drop in two months today

Cryptocurrency Rise and Fall

What worries people in the currency circle the most today is probably the waterfall-like decline in the cryptocurrency market.

At 14:00 on June 11, "Bitcoin's biggest drop" ranked third on Baidu's real-time search list, with a search index of 407678. Earlier today, "Bitcoin drop" also entered Sina Weibo's hot search list, ranking 41st, with a search heat of 40934.

Baidu Search Ranking

According to data from tokenclub, Bitcoin began to plummet around 8 am on June 10, and fell to 43,454 yuan at 13:40 on June 11. The lowest point fell to 43,055 yuan, the lowest level in nearly two months.

Bitcoin price change in one day

Bitcoin trend in the past 7 days

As a bellwether of the cryptocurrency market, the trend of Bitcoin can drive the trend of the entire cryptocurrency market. According to coinmarketcap (link), as of 4 p.m. on the 11th, all of the top 100 digital currencies in the world, except Veritaseum, have fallen in the past 24 hours. Among them, Skycoin and WaykiChain have fallen the most, both exceeding 20%, and EOS has fallen 16.27%.

WaykiChain Price Changes

Skycoin Price Changes

Currently, the price of Bitcoin fluctuates around $6,700. Globally, the total value of the digital currency market has also reached a new low in the past two months, falling below the $300 billion mark. At 7 a.m. on the 11th, the total market value of global digital currencies fell to $291 billion. The evaporated market value reached $42 billion (as of 15:00 today), and some people joked that "Meituan has evaporated."

What exactly caused this "waterfall-like" decline? Now, there may be two main reasons.

1. South Korea’s Coinrail exchange was hacked

Recently, the system of South Korean cryptocurrency exchange Coinrail suffered a "cyber invasion" and some of the exchange's digital currencies were stolen by hackers; hackers used the stolen currencies to dump the market, causing Bitcoin to fall for three consecutive days.

Coinrail said that the exchange is reviewing the system and has managed to freeze the threatened NPXS, NPER and ATX currencies. Other cryptocurrencies are stored in "cold wallets" and are cooperating with investigators and other exchanges to try to find the murderer and recover the funds. Coinrail said that "two-thirds of the total amount lost has been recovered, but some has been sold on decentralized exchanges."

According to data from Coinmarketcap.com, Coinrail Exchange covers more than 50 different cryptocurrencies and ranks 98th in terms of trading volume among similar markets worldwide, with a 24-hour trading volume of approximately US$2.65 million.

2. Tightening of US Regulation

The Wall Street Journal reported last Friday that the U.S. Commodity Futures Trading Commission (CFTC) is investigating four major cryptocurrency exchanges, Bitstamp, Coinbase, itBit and Kraken. Investigators are asking the exchanges to hand over comprehensive investigation data to detect whether there is price manipulation.

In sharp contrast to the plummeting price of Bitcoin is the inflow of large amounts of funds; the inflow of funds for popular currencies is greater than the outflow, indicating that there is a "bottom-fishing" behavior among investors.

Changpeng Zhao tweets

Regarding the decline of Bitcoin, Binance CEO Zhao Changpeng tweeted, "This year's BTC price trend is similar to that of 2014, with ups and downs occurring every year. BTC has been around for 9 years and has experienced ups and downs almost every week, but in the long run, BTC remains reliable, so a short-term decline is not worth making a fuss about."