In the turbulent digital currency market, the recent sharp drop in Bitcoin at a high level has attracted widespread attention. This time, with the increase in US regulatory efforts, the short sellers seem to have found the best time to seize the opportunity. Let us uncover the ups and downs of the digital currency market and explore the mystery.

The ups and downs of the digital currency market

In recent years, the digital currency market has fluctuated frequently and violently like a roller coaster. As the first widely accepted cryptocurrency, Bitcoin's price fluctuations have always attracted much attention. However, the latest sharp drop has caused an uproar in the market. According to data, the price of Bitcoin has plummeted by more than 20% in just a few days, a figure that caught investors off guard. At the same time, the US government's supervision of digital currencies has become increasingly strict, casting a shadow on the market.

Increased US regulation and the digital currency market

The United States has always been a weathervane for the global financial market, and its regulatory policies have even affected the trend of the global market. Recently, the US government has significantly increased its regulatory efforts on the digital currency market, mainly focusing on anti-money laundering and anti-terrorist financing. This series of measures has severely hit investors' confidence in digital currencies, and market sentiment has begun to decline. The bears saw this opportunity and increased their selling of digital currencies such as Bitcoin, causing the price to fall sharply.

Opportunities and challenges for bears

As an important force in the market, the existence of bears plays an important balancing role in the market. In the ups and downs of the digital currency market, bears can always accurately grasp the turning point of the market and achieve counter-market operations. This time, the Bitcoin plummeted, and the bears saw an opportunity. By selling digital currencies in large quantities, they not only maximized their own profits, but also injected more uncertainty into the market, exacerbating the volatility of digital currency prices.

Future trend of the digital currency market

Faced with the ups and downs of the digital currency market, investors can't help but start thinking about where the future development direction of digital currencies is? What impact will the US regulatory policy have on the digital currency market? Will the selling behavior of bears further aggravate the market turmoil? All kinds of problems are facing investors, and more thinking and analysis are needed.

Conclusion

The volatility of the digital currency market reminds us all the time that investment needs to be cautious. With the strict increase in US supervision and the explosion of opportunities for bears, the future of the digital currency market is full of unknowns. But it is in this uncertainty that investors can find more opportunities and challenges. Let us wait and see how the future of the digital currency market will develop.

The four most famous international exchanges:

Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
China Line　APP DL	China Line　APP DL	China Line　APP DL	China Line　APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.

On November 26, during the overseas Thanksgiving holiday, Bitcoin staged a "thousand-knife" plunge. Bitcoin plummeted from a high of $18,913 to $16,354, a drop of 10.2%. Since October, Bitcoin has been rising all the way, soaring from $10,000 to $19,500, nearly doubling. It is only one step away from the historical peak of $19,783 at the end of 2017. Today, Bitcoin and other digital assets plummeted together, which really surprised many people.

The study society believes that today's sharp drop in Bitcoin and the overall market is the first large-scale correction since this wave of rise. The first reason is that Coinbase began to prevent customers from making new margin transactions, while canceling all outstanding limit orders, and completely terminated the margin trading function next month. Because Coinbase did not fully disclose the details of the CFTC's specific guidance, the compliance boundaries of the future trading market are not clear, and there is a certain panic in the market.

In addition, since the United States is in the Thanksgiving period and the heavily invested institutions are on holiday, the shorts are caught off guard by the bulls. Bitcoin has continued to rise recently, and the market has accumulated a large number of profit-taking orders. As the United States tightens its supervision of institutions, short sellers have found an opportunity, and the market has formed a certain resonance, so there has been a significant decline. In addition, as the end of the year approaches, the global market is facing a situation of gradually tightening funds, and the expectations of longs for incremental funds have decreased, so some profit-taking actions have been taken.

After all, if calculated from the low point in March this year, the price of Bitcoin has nearly doubled this year. Overall, a unilateral rise is not a healthy market performance. A certain correction in the market is a healthy performance. The market needs to pay attention to the support near the 16,000 integer mark in the future.

BTC has a sharp correction during the day, and the trading volume has increased significantly

According to the data from the Huobi trading platform, BTC has a sharp correction during the day, falling to 16354.28USDT at its lowest. From the one-hour level, BTC's decline started in the early morning, and there were two obvious increases in trading volume during the period. This wave of callback may be caused by a variety of reasons. First, Coinbase did not fully disclose the details of the CFTC's specific guidance, and the market panicked to a certain extent; secondly, because the US heavy-weight institutions were on Thanksgiving holiday, the bears were caught off guard by the bulls, and the market profit-taking formed resonance; as it was close to the end of the year, the bulls' expectations for incremental funds were reduced, and some profit-taking was also carried out. The lower support level may be at the Fibonacci 0.382 position of the overall upward market retracement, which is near the 16,000 integer mark. Continue to pay attention to the changes in trading volume and the support of the lower support level in the evening.

According to the data of Huobi trading platform, ETH and BTC have a high degree of similarity in the market, and they also have a sharp callback during the day, with a minimum of 481.30USDT. From the one-hour level, ETH also experienced two increases in trading volume, both accompanied by a short-term rapid decline, and a certain short-term shrinkage and sideways trading during the period, indicating that the bears' efforts this time were mainly caused by institutions, and the short-term profit-taking in the market also played a certain resonance role. From the daily level, after today's decline, it basically returned to the high point of the previous round of rising market. In the evening, continue to pay attention to the changes in trading volume and the support of the 500 integer mark below.

In terms of contracts, Huobi contract big data shows that BTC contract holdings have increased slightly, contract trading volume has increased slightly, and the contract market is active. The basis of delivery contracts has increased slightly, and the funding rate of perpetual contracts has increased slightly.

ETH contract holdings have increased slightly, contract trading volume has increased slightly, and the contract market is active. The basis of delivery contracts has increased slightly, and the funding rate of perpetual contracts has increased slightly.

USDT's quotation in the Huobi Global Station OTC market is 6.53 yuan.

According to Huobi Research Society data monitoring, today's DeFi total locked volume (TVL) has decreased slightly to US$1.511 billion, and the actual locked volume has decreased slightly to US$9.93 billion. Among them, the top projects have all experienced declines to varying degrees, and Synthetix has fallen sharply, reaching 24.10%. Today's total Defi trading volume has increased significantly, reaching US$1.08 billion. Among them, the top projects all saw increases to varying degrees, with Curve seeing the largest increase of 167.44%.