[Feature] Cryptocurrency Market Plunges Collectively in the Early Morning, What Is the Reason?

The market finally took a dive. In the early morning of March 10th, the cryptocurrency market collectively plummeted, with Bitcoin's highest drop reaching nearly 9%. Most currencies fell by around 10%, and the total market value of cryptocurrency fell below one trillion dollars. According to Coinglass, the liquidation volume of the cryptocurrency market in the past 12 hours was 286 million US dollars.

Recently, there have been a series of panic-inducing news. Firstly, in terms of macroeconomics, Powell continues to be hawkish, with expectations of a 50 basis point interest rate hike increasing. Biden proposed a 30% consumption tax on Bitcoin mining, and the New York State Attorney General sued Ethereum for being a security. Within the industry, one bad news after another hit, from the Silvergate bankruptcy liquidation to the BUSD incident and Forbes' exposure of asset misappropriation. Even industry giants such as Binance are having a hard time.

First, the stock price of SVB Financial Group, the parent company of Silicon Valley Bank, plummeted by more than 60% on Thursday, and further dropped by nearly 20% after hours. Several funds, including Founders Fund, led by Silicon Valley "venture capital godfather" Peter Thiel, reportedly suggested that clients withdraw funds from the bank.

Subsequently, the cryptocurrency market followed suit, and the sharp drop in the early morning indicated that sentiment in the cryptocurrency market was turning towards panic. Coinlive summarized the important market trends in the early morning:

1.HT
During this round of decline, HT exploded at a fixed point at 5 am and plummeted as much as 93% before rebounding tenfold. According to Coinglass data, HT liquidated $2.7912 million in the past 12 hours.

The users shouted that they were "harvested" again, and Sun Yuchen responded on Twitter, saying that "Everything is normal in this Huobi exchange operation, the wallet is normal, the operation is normal, and the backend is normal. It is only because some users triggered the phenomenon of leveraged chain liquidation of spot and contract HT tokens. At present, all work is steadily progressing, and there are no any emergencies, which only belong to market behavior and fluctuations. For the leverage piercing losses caused by HT market fluctuations, Huobi platform will fully bear the responsibility. We deeply apologize for the impact of the leveraged clearing caused by a few users on the market."

Huobi Exchange currently has poor liquidity and is gradually being abandoned by users. Is it really "everything is normal" in this situation?

2.Blur
Blur has been constantly falling recently, and the situation has worsened as more people abandon it. A week ago, Blur was still a star coin, but it has now fallen by 63% from its recent high of $1.4 on February 19 to its current price of $0.53. When it was launched in early February, Blur triggered a collective frenzy in the industry, with people praising it as innovative, born for trading, and destined to surpass Opensea as the industry leader.

However, as market liquidity began to deteriorate, the platform coin that had not yet been empowered and had a large number of airdrops continued to fall. At this point, those who were previously caught up in FOMO began to reflect on Blur's ability to truly solve the problem of poor liquidity in NFTs and the usefulness of its token.

3.BTC
BTC has fallen below $20,000 for the first time since January 21. According to PaiShield's tracking, on March 8, US law enforcement agencies transferred 9,800 BTC to Coinbase for sale. Although the selling pressure is not significant, it has caused some market panic. There are a total of 49,000 BTC on the addresses of the chain, which were seized by US law enforcement agencies as illegal gains related to the Silk Road dark web in November 2021 and March 2022.

Summary
In terms of upcoming news from the US, it is important to pay attention to the following: Employment and non-farm payroll data will be released at 21:30 on March 10; February CPI will be released at 20:30 on March 14; The Fed will announce interest rates at 02:00 on March 22, and Powell will speak at 02:30 on the same day. Currently, March is still a month of shocks and washouts, and it will be difficult for the market to break out.