Bitcoin had plunged 32% through the 30,000 mark, the wave of chopping positions scourge the stock market

With the title of “father of emerging markets” McPhelps warned in March this year, hope and pray that the price of virtual currency “one brother” Bitcoin (Bitcoin) will not collapse, if the big diarrhea, global stock markets are afraid to face a substantial adjustment, especially technology stocks, because the performance of the two The linkage is now a prophecy! With China’s complete ban on speculation in virtual currencies, requiring financial and payment institutions not to carry out business related to virtual currencies, the total market value of global virtual currencies once evaporated about 700 billion U.S. dollars (about 5.46 trillion Hong Kong dollars), bitcoin more quickly lost 40,000 U.S. dollars and 30,000 U.S. dollars off, for the first time in more than five months, Wednesday (19) low of 29,625 U.S. dollars, dipped more than 32%, compared to the April record high of 54%. Wednesday (19) as low as $ 29,625, a drop of more than 32%, a cumulative drop of 54% from the historical highs of April, the sharp decline caused a wave of chopping positions, the first scourge of the European and American stock markets and commodity markets.

There are mainland trading platform data show that the official signal of strict crackdown led to 430,000 people burst positions during the day, involving 18.7 billion yuan, from May 12 to date, hundreds of thousands of people have been chopped positions, more than 56 billion yuan of funds into dust.

Data from the trading platform CryptoCompare showed that bitcoin’s high and low volatility reached $14,000 on Wednesday, with the total market value falling to $631.5 billion. Other virtual currencies were also hard to escape, with the “second brother” ethereum falling 43 percent to a low of $1,905 on Wednesday, and the recent hit dogcoin also plunged 41 percent to a low of $0.2102. A number of Wall Street analysts are saying that bitcoin is now in its worst selling wave since the virtual currency boom began last year.

As a result of retail investors “people stepping on people” to sell, the virtual currency exchange Coinbase and Binance due to excessive traffic once faced failure interruption.

Among them, JPMorgan Chase expects bitcoin futures are experiencing the most dramatic and protracted wave of liquidation since last October, and the outflows are buying gold as the liquidation is not finished. Veteran commodity analyst Mike McGlone believes that the heavy drop in bitcoin may enable gold prices to regain $2,000 per ounce.

According to the latest monthly survey disclosed by Bank of America, 43% of fund managers surveyed believe that the most crowded trade in May was “bearish on bitcoin,” up significantly from 27% in April. Jeffrey Halley, senior market analyst at Oanda, expects bitcoin to lose its key level of $40,000 before it takes on $30,000, but it’s hard to say the bottom is in sight.

This time the virtual currency was chopped off, the disaster and the stock market and commodity market fuse is China Internet Finance Association, China Banking Association, and China Payment Clearing Association issued a joint announcement on Tuesday that virtual currency seriously infringes on people’s property security, disrupting the normal economic and financial order. Financial institutions, payment institutions, etc. shall not use virtual currencies to price products and services; shall not underwrite insurance business related to virtual currencies, or include virtual currencies in the scope of insurance liabilities, etc. At the same time, the Inner Mongolia Development and Reform Commission announced the establishment of a letter reporting platform for virtual currency “mining” enterprises.

In fact, China’s tightening regulation of virtual currencies is well documented, as Li Bo, vice governor of the People’s Bank of China, said earlier that virtual currencies such as bitcoin must be strictly regulated, and then it was rumored that bitcoin trading was being “blocked” by some of China’s large commercial banks, such as banning bank accounts from being used for bitcoin trading. Adam Reynolds, CEO of Saxo Finance Asia Pacific, is not surprised by China’s crackdown on virtual currencies, “For governments with strong capital control powers, the only virtual currency they can tolerate is their own central bank digital currency.”

Some analysts also believe that China’s ban on virtual currency trading is paving the way for the digital yuan. Bass, the founder of Hayman Capital, a prominent U.S. predator who has been bearish on the yuan and even threatened to sell the Hong Kong dollar short, warned that the digital yuan strengthens the possibility of China’s export of digital authoritarianism and that the West is facing the greatest threat in 30 or 40 years.