1. The cryptocurrency market faced a 'Black Monday', with Bitcoin once plummeting by 8%.
The price of Bitcoin plummeted significantly on Monday, briefly falling below the $84,000 mark, reaching a low of $83,824, a cumulative drop of nearly 30% from the historical high at the beginning of October. Ethereum also crashed by 10%, hitting a low of $2,719. This drop led to nearly $1 billion in leveraged positions being forcibly liquidated within 24 hours, with over 260,000 people across the network facing liquidation.
2. High leverage liquidations triggered a chain reaction, highlighting the vulnerability of market structure.
This round of sharp decline was triggered by approximately $400 million in large liquidation orders, with some exchanges offering leverage ratios as high as 200 times, exacerbating price volatility. Industry insiders warn that the forced liquidation data disclosed by crypto exchanges is not complete, and the real leverage levels in the market may be much higher than reported data. The open interest in perpetual contracts is as high as about $787 billion, far exceeding the leverage exposure of traditional ETF markets, making it difficult to accurately assess the degree of risk accumulation.
3. The spot Bitcoin ETF continues to see outflows, with a net outflow of $3.5 billion in November.
The US spot Bitcoin ETF recorded a net outflow of $3.5 billion in November, marking the largest monthly outflow since February this year. Among them, BlackRock's IBIT fund saw an outflow of $2.34 billion and experienced the largest single-day outflow of $523 million since its inception. Despite the outflow of funds from the market, institutional gaming and rational pricing are becoming the new normal.
4. A divergence between whales and retail investors has emerged, showing characteristics of the later stage of the cycle.
On-chain data shows that the accumulation speed of long-term holders and large wallets has significantly slowed down, while small wallets holding less than 1 Bitcoin have accelerated their purchases as prices drop. Analysis points out that this pattern of 'whales slowing down purchases while retail investors accelerate accumulation' is a typical phenomenon in the later stages of cycles, which will exacerbate the short-term fragility of the market.
5. Global regulatory dynamics and the macro environment intensify market uncertainty.
The People's Bank of China recently issued a risk warning, emphasizing the significant risks associated with virtual currencies and stablecoins, and called for a crackdown on related illegal activities. At the same time, the Bank of Japan has released clear signals for interest rate hikes, along with market concerns about the future policy path of the Federal Reserve, which together have intensified the pressure on global risk assets.
6. S&P downgrades USDT stability rating, stablecoins attract attention.
S&P Global Ratings has downgraded the stability rating of the world's largest stablecoin USDT to the lowest level, warning that if Bitcoin prices continue to decline, the collateral assets of USDT may become insufficient, adding another layer of uncertainty to the market.
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