In the past 24 hours, the virtual currency market has experienced significant fluctuations. According to financial market data from Yingwei, Bitcoin has continued to decline from over $60000 and once fell below the $54000 mark. Within 24 hours, Bitcoin plummeted to $6000.
As of July 5th, Bitcoin was reported at $54206.2 per coin, a decrease of over 8%.
Other currencies in the virtual currency market have all experienced a massive decline. Ethereum fell more than 11%, while Dogecoin fell more than 16%.
According to CoinGlass data, over 230000 people have been liquidated in the virtual currency market in the past 24 hours, with a total amount of approximately 680 million US dollars (approximately 4.9 billion yuan). The largest single sell-out occurred in Ethereum.
According to the China Securities News, the virtual currency crash this time was due to the failure of the rumored "Ethereum spot ETF will officially start trading on July 4th" in the market.
According to CryptoQuant data, a total of $2.4 billion worth of Bitcoin with a holding period of 3-6 months has been transferred during this decline. Analyst Cau ê Oliveira pointed out that this indicates that investors who bought Bitcoin at the beginning of the year (mostly speculators engaged in short-term trading to "halve" the benefits of Bitcoin) engaged in collective selling.
In addition, the latest minutes of the Federal Reserve's monetary policy meeting show that most Fed officials still believe that more data on declining inflation is needed in order to possibly lower interest rates.
According to the Securities Times, analysts also believe that the latest actions of Binance, the world's largest cryptocurrency exchange, may have an impact on the sentiment of the virtual currency market. Binance will cease trading services for the following six currency pairs: BTC/AEUR ETH/AEUR、AI/TUSD、CHR/BNB、GAS/FDUSD、LQTY/FDUSD， The revision will take effect on July 5th. The company did not disclose the specific reason for delisting, but only reminded that it will regularly review all listed spot trading pairs and delete some trading pairs in the event of poor liquidity or other factors.
Meanwhile, Binance has recently added some new trading pairs on its platform. WIF/BRL, ZK/USDC, and ZRO/USDC have been added to the Binance spot. It is worth noting that this service is not open to all customers. At present, users residing in the following countries or regions will not be able to trade the above-mentioned spot trading pairs: Canada, Cuba, Crimea, Iran, the Netherlands, North Korea, Syria, the United States and its territories (American Samoa, Guam, Puerto Rico, Northern Mariana Islands, United States Virgin Islands), as well as any non-governmental controlled areas in Ukraine.
Since the beginning of this year, the exchange has implemented several similar changes. Last month, it ceased trading services for the following currency pairs: ALPACA/BTC, NFP/TUSD, MDX/BTC, QUICK/BTC, and XAI/BNB. A few months ago, Binance terminated all business related to Monroe Coin (XMR), which led to a sharp drop in the price of this popular privacy coin.
The supply of virtual currency in the market has also been significantly increasing recently. According to public information, there will be 5 new cryptocurrencies available for investment in July, namely 5thScape (5SCAPE), DarkLume (DLUME), SMOG (SMOG), PlayDoge (Play), and PEPE.
According to the China Securities Journal, the recent downturn of Bitcoin is mainly attributed to the large-scale sell-off of virtual currency mining companies, whose revenue has plummeted. According to IntoTheBlock data, the amount of Bitcoin held by miners has dropped to the lowest level in 14 years. Miners sold over $2 billion worth of Bitcoin in June, the highest in over a year.
After the Bitcoin mining reward was halved in April this year, the income of Bitcoin miners significantly decreased. The income of Bitcoin miners mainly comes from two sources: mining rewards and transaction costs. The halving event directly affects the mining rewards for miners, however, the operating costs of miners, such as electricity and equipment costs, will not decrease. Therefore, many miners may face profitability difficulties.
Recently, due to the cessation of activities by many miners, the difficulty of Bitcoin mining has sharply decreased. The latest Bitcoin hash rate has decreased from 88 trillion to 83 trillion. Although the difficulty of mining has decreased, the income of Bitcoin miners has hit a historic low in the past two months due to the "halving event". According to Kaiko data, the total income of miners has decreased from an average of $107 million per day before halving to $30 million.
A "miner" said that with the sharp drop in virtual currency prices, the shipment volume and operating revenue of mining machine manufacturers have been greatly affected.
According to f2pool data, as Bitcoin's trading price drops below $58000, inefficient mining machines are facing challenges under current market conditions. Calculated at $0.06 per kilowatt hour, Bitcoin "mining machines" such as Ant S19, Shenma M30S+, and Shenma M33S+have reached the shutdown coin price (mining cost price), which means they will incur losses upon startup.
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