On the morning of August 3rd, Beijing time, the global cryptocurrency market experienced a "great escape" as Bitcoin prices dramatically plummeted, briefly falling below $61,000. Other major cryptocurrencies such as Ethereum, Binance Coin, and Dogecoin also followed suit with declines.
As of the time of writing this article, Bitcoin's price continues to drop, currently valued at $60,862 per coin. This price fluctuation has sparked widespread concern and unease in the market.
Massive Selling of Bitcoin
During the trading on August 3rd, Bitcoin's price rapidly declined, successively breaking through the psychological thresholds of $63,000, $62,000, and $61,000, reaching a low of $60,517 per coin. Other cryptocurrencies were not spared, with Ethereum's 24-hour drop reaching 6.84%, Binance Coin's drop exceeding 5%, and Dogecoin's 24-hour decline also hitting 6.8%.
Data from CoinGecko shows that the total market value of the entire cryptocurrency market has fallen below $2.2 trillion, with a loss of nearly $88 billion (approximately 630.1 billion yuan) within 24 hours.
Market Remains in a Prolonged Slump
Since July, Bitcoin's price has fluctuated between $55,000 and $70,000. Although it once reached a high of $69,799, it quickly fell back. Many institutions predict that without a strong market catalyst, Bitcoin's price may continue to fluctuate within this range in the coming months.
Zhao Wei, a senior researcher at the OKX Research Institute, pointed out that Bitcoin has fallen for four consecutive days and is still in a downward channel. Changes in the global economic environment and fluctuations in the US dollar exchange rate have significantly impacted the market, and speculative behavior has also exacerbated price volatility. The cryptocurrency market is influenced by various factors such as supply and demand relationships, policies and regulations, global economic cycles, and traditional financial markets, and its price trend is highly volatile and sensitive. Market participants should closely monitor macroeconomic factors such as interest rate cuts in the United States.
Sharp Decline in Bitcoin Miner Revenue
The downward pressure on the cryptocurrency market mainly comes from the continuous selling of "miners" whose income has plummeted. Since the Bitcoin mining reward was halved, many miners have faced a financial crisis. The halving event directly affected the mining rewards of the miners, while operating costs such as electricity and equipment expenses did not decrease.
Research firm Kaiko stated that as the income of miners holding a large amount of cryptocurrency assets has sharply declined, the market may face greater selling pressure. Data from CryptoQuant shows that miners are accelerating the sale of their Bitcoin reserves, with the daily outflow reaching the highest level since May.
In addition, the supply and demand situation in the Bitcoin mining machine production market highlights the oversupply, and the problem of excess capacity is gradually emerging. Some well-known mining machine manufacturers have accumulated a large number of chip orders, and it is expected that about 5 million mining machines will be waiting to enter the market next year. This will lead to a significant increase in the total network's computing power, further compressing the profit space for miners.
