The recent sharp drop in the cryptocurrency market is mainly due to the following reasons:

Policy and regulatory level

The U.S. Department of Justice was allowed to sell Bitcoin seized from the dark web market "Silk Road", which increased the supply of Bitcoin in the market and brought downward pressure on prices.

Market and capital level

- Institutional selling: Some institutional investors sold a large number of crypto assets such as Bitcoin, increasing market selling pressure.

- Dollar appreciation: The continued appreciation of the U.S. dollar has led to a contraction in the global money supply, which is not conducive to the price performance of crypto assets such as Bitcoin.

- Leveraged liquidation: The market leverage ratio is close to a historical high. Once the price falls, the forced liquidation of leveraged transactions will aggravate the decline.

News and sentiment level

- Insider trading allegations: Trump's TRUMP coin was accused of insider trading, which triggered market panic, causing investors to lose confidence in the cryptocurrency market, and then sold a large number of cryptocurrencies including Bitcoin.

- Negative comments from bigwigs: JPMorgan Chase CEO Jamie Dimon once again publicly criticized Bitcoin for "having no intrinsic value", exacerbating market panic.

Technical and trading level

It is reported that when the TRUMP coin plummeted, the number of requests to the Phantom wallet surged to more than 8 million times per minute, causing trading paralysis. The Jupiter exchange also suspended services due to excessive system load, making it difficult for investors to conduct trading operations and unable to stop losses or adjust positions in time, exacerbating market panic and confusion. #TRUMP上线币安现货 $BTC $TRUMP