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Bitcoin Drops 4%, $2.9B Vanishes as 148,000 Traders Go Bust

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  • 2024-07-08
  • 19 comments

On October 26th, Bitcoin experienced a significant drop, with Coinglass data indicating a collective decline in virtual currencies. Among them, Bitcoin fell nearly 4% at one point. As of press time, Bitcoin had dropped by 2.29%, Ethereum by 3.83%, and Dogecoin by 7.85%. According to Coinglass data, over the past 24 hours, more than 148,000 people have been liquidated in the virtual currency market, with $408 million (approximately 2.9 billion yuan) vanishing. The CME Bitcoin futures fell by 2.30% compared to Thursday's New York close, with a cumulative decrease of 3.09% for the week.

In the U.S. stock market, stocks related to cryptocurrencies also plummeted collectively. The share price of MARA Holdings once fell by 7%, and Riot Platforms dropped by more than 5%. According to a report by Securities Times on October 26th, previously, the OEXN platform stated that the impact of Bitcoin on government fiscal policy is intensifying. Given the risks it poses to the sustainability of maintaining a permanent budget deficit, the government should consider taxing BTC or prohibiting its use.

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Data from the blockchain explorer Mempool shows that the difficulty of Bitcoin mining has increased by 3.94%, reaching a record high of 95.67 T. The difficulty adjustment occurred at block height 866880 (around 2 a.m. Beijing time on August 23rd). According to The Block's data dashboard, the seven-day moving average of Bitcoin's network hashrate also set a historical high of 723.6 EH/s, breaking through the 700 EH/s mark for the first time.

Since the Bitcoin halving in April, the income of Bitcoin miners has seen a significant decline. It is understood that the daily production of Bitcoin varied before the halving but revolved around the block reward system, producing an average of 6.25 Bitcoins every 10 minutes. According to the previous block reward, this was equivalent to producing about 900 Bitcoins per day. However, after the halving event, this number would drop to approximately 450 Bitcoins per day.

The current price of Bitcoin is almost at the same level as before the halving (between $60,000 and $65,000 per coin), but the miners' output has been halved. According to calculations, if miners sell Bitcoin at $60,000 per coin, the entire mining industry would lose nearly $10 billion in revenue in the year following the halving.

As reported by the Economic Daily, since the inception of Bitcoin, its price has been volatile, with dramatic increases and decreases being almost the norm. The multiple risks faced by the market cannot be ignored."As an emerging digital asset, the price fluctuations of Bitcoin are influenced by a variety of factors, including market sentiment, macroeconomic environment, technological innovation, and regulatory policies," Yu Jianing, co-chair of the Blockchain Special Committee of the China Communications Industry Association and honorary chairman of the Hong Kong Blockchain Association, analyzed. The regulatory attitudes and policies towards cryptocurrencies in various countries are constantly evolving, and any new regulatory measures could significantly impact Bitcoin prices. At the same time, changes in the global macroeconomic environment, such as interest rate changes, inflation rates, and international trade relations, could also affect the value of Bitcoin and other cryptocurrencies. In addition, current cryptocurrency trading platforms and wallets still face risks such as hacker attacks and security vulnerabilities.

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