In recent days, leading virtual currencies have collectively suffered heavy losses. Under the overturned nest, how can there be intact eggs? Is it a struggle between bulls and bears, or a game between the market and policy?
Originally, the Federal Reserve had been rumored to cut interest rates or maintain them, leading most of the market to believe it would be positive news. However, Trump's nomination of Kevin Warsh as the next Federal Reserve Chairman, who maintains high interest rates and a hawkish approach to tightening liquidity, dealt a heavy blow to the market.
First, the virtual currency market experienced a flash crash, followed by a sweep through the gold, silver, and heavy metal industries, causing panic in the market. Capital institutions, heavily invested whales, and market speculators all rushed to sell their chips, resulting in weak buying pressure and a complete liquidity exhaustion, forming a vicious cycle of "decline >>> long positions being liquidated >>> further decline." Within 24 hours, the total liquidation amount across the network reached 3 billion USD, and as of now, the cryptocurrency market and gold and silver continue to decline, with the downward trend still not halted.
The cryptocurrency market hasn't seen much time since 1011, and the crash has come again. The storm of flash crashes has swept through the vast majority of virtual currencies, with none spared, almost all hitting their lowest prices since the peak.
BTC has fallen below 78K, with a distance to 126K, a decline of 38%
ETH has fallen below 2300, with a distance to 4956, a decline of 54%
BNB has fallen below 750, with a distance to 1375, a decline of 45%
XRP has fallen below 1.51, with a distance to 3.66, a decline of 59%
SOL has fallen below 97, with a distance to 295, a decline of 67%
Aside from the stablecoins USDT and USDC, the top 5 virtual currencies by market cap are still in such a situation, $DOGE , $ZEC , SHIB, XMR and other traditional altcoins, as well as WLFI, $XPL , ASTER, LINEA and other emerging altcoins have also experienced significant declines, with many down by 99% and some down by 70%.
It truly aligns with the saying, "When the avalanche comes, no snowflake is innocent."