Bitcoin plunged nearly 10% on Sunday, and market sentiment plummeted

In this era of digital currency, Bitcoin, as a bellwether of the market, always attracts wide attention with its price fluctuations. Recently, the price of Bitcoin suddenly dropped by nearly 10% on Sunday. This news was like a bombshell, instantly shaking the entire cryptocurrency market. The mood of many investors was like a roller coaster, and the market was wailing one after another, as if announcing that the price rebound in the past two months had instantly vanished.

Many investors were caught off guard by this sudden price drop. Looking back over the past two months, the price of Bitcoin has experienced a strong rise, climbing all the way from the lowest point to a peak of nearly $60,000. However, in just a few days, all this beauty seems to have been ruthlessly torn apart. For those investors who have just entered the market, seeing their assets shrink in an instant is undoubtedly a huge psychological shock.

First, let's take a look at why Bitcoin has experienced such dramatic fluctuations in a short period of time. Market analysts point out that there are several main reasons for the decline in Bitcoin prices. The first is the change in market sentiment. Due to the uncertainty of the global economy, many investors chose to withdraw when faced with risks, especially when they saw the market began to show a downward trend, panic spread rapidly. Secondly, the recent regulatory policies of some countries on cryptocurrencies have also caused market concerns. For example, the US Treasury Department's tightening regulatory policies on large cryptocurrency trading platforms has caused investors to have doubts about the future market development.

In this context, many investors chose to sell their bitcoins, causing the price to fall further. It can be said that this wave of decline is not an isolated incident, but the result of multiple factors. The market reaction is like a domino. Once the first one falls, the subsequent chain reaction is inevitable.

Furthermore, technical analysis also provides some explanation for the price fluctuations of Bitcoin. Many technical analysts believe that after a strong rise, Bitcoin has reached the overbought area and is facing certain adjustment pressure. According to technical charts, many investors choose to take profits at this position when they see the price of Bitcoin close to the previous high, further exacerbating the price decline.

Not only that, discussions about Bitcoin on social media are also heating up. On platforms such as Twitter and Reddit, many users share their views and predictions on the market, forming a powerful information dissemination effect. Negative comments and predictions have triggered the spread of panic, and many people have chosen to exit the market under the pressure of such public opinion.

Many veteran investors also feel helpless in this round of price drops. Once upon a time, they were proud of Bitcoin and believed that they had seized the opportunity of the times. However, today's market has made them feel discouraged. Many investors expressed their disappointment and anger on social media, and some even said that they would completely withdraw from the cryptocurrency market. The spread of this sentiment reflects the market's uncertainty about the future of Bitcoin.

It is worth mentioning that despite the sharp drop in the price of Bitcoin, the fundamentals of the market have not changed fundamentally. As a decentralized digital currency, Bitcoin still has its unique value and application scenarios. Many analysts point out that despite the low market sentiment in the short term, Bitcoin is still an investment target worthy of attention in the long run. With the continuous development of blockchain technology and the gradual acceptance of digital currencies by various countries, the future of Bitcoin is still full of opportunities.

In addition, as more and more institutional investors begin to enter the crypto market, the market maturity is also increasing. Although there may be price fluctuations in the short term, in the long run, such fluctuations will bring more liquidity and participation to the market and promote the development of the overall market.

In this ever-changing market, investors need to remain calm and look at price fluctuations rationally. Although the price of Bitcoin has fallen sharply in the short term, it does not mean the end of the market. On the contrary, it may be a signal of market adjustment, laying the foundation for future increases.

After experiencing this price drop, many investors began to reflect on their investment strategies. For new investors, how to stay rational in a volatile market and avoid being swayed by short-term price fluctuations has become an important issue. Many experts suggest that investors should fully understand the market before investing, formulate a reasonable investment plan, and avoid blindly following the trend.

Finally, we can see that the fluctuation of the Bitcoin market is not only a change in price, but also a reflection of people's mentality. In this era full of opportunities and challenges, investors need to maintain keen insight and rational judgment at all times to remain invincible in this wave of digital currency. The future of Bitcoin is still worth looking forward to, but investors need to be vigilant to market changes and maintain the ability to respond flexibly.

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.

Bitcoin’s decline intensified over the weekend, and it began to plummet from $9.141 in the early hours of yesterday (8th). As of press time, it has not stopped falling and is quoted at $8.082.44. The intraday decline was close to 10%, wiping out nearly 2 billion.
Months of increase.
According to CoinMarketCap data, affected by the decline of Bitcoin, the top ten mainstream cryptocurrencies such as Ethereum, Ripple, Bitcoin Cash, Litecoin, and BSV all fell by more than 10% in 24 hours. Among them, Bitcoin Cash and BSV fell the most significantly, reaching 15.95% and 14.38% respectively. At the same time, the total value of the cryptocurrency market fell by more than US$20 billion.
Regarding the recent plunge in Bitcoin, industry insiders believe that the "culprit" should be PlusToken's dumping of stolen money. Foreign media "U.Today" reported that the day before the incident, funds in PlusToken-related addresses changed again, with as many as 13,112 Bitcoins being transferred to dozens of addresses.
Cryptocurrency analyst ErgoBTC said that the PlusToken team has been selling stolen funds in batches since August 2019, and at the end of last year, it transferred 79 million yuan to an unknown wallet.
10,000 Ether coins were traded, with a transaction value of approximately US$105 million at the time. Since then, the total market value of cryptocurrencies has plummeted by US$12 billion.
However, some analysts in the industry have expressed different opinions, such as the cryptocurrency research team MICA Research
After investigating the source of this wave of selling pressure and initially reviewing the trading volume of exchanges, the finger was pointed at Bitfinex. The analyst explained,
Bitfinex's trading volume is usually not high. Even if there are price fluctuations, the trading volume fluctuations will only fluctuate up and down by 100%. However, when it fell yesterday, it rarely fluctuated by 378%.
The single-day trading volume increased by 1.1%, and it is speculated that the selling pressure may have come from the Bitfinex exchange, but it is not clear who sold it.
On the other hand, Bitmex exchange also suffered a heavy loss, with nearly $190 million of long orders forced to close. As the decline exceeded everyone’s expectations, leveraged 20
Investors who have lost more than 100 times the price will not survive. The market is still in shock. Many traders choose to short. However, whether the decline will continue depends on the mood of whales. Any predictive indicators are probably useless. Otherwise, there should have been signs of this decline. The analyst finally exclaimed that he really admired the dealer's play. The script was too bizarre.