The currency market has been falling for 12 weeks, and it is still…… There is one mainstream currency make me so crazy is Ethereum. In the past two days, there has been a big plunge with a number of altcoins, triggering a new round of panic in the currency circle... Many people in the currency circle sighed with emotion, the big bear market is coming? Let's talk about it from a small perspective to big cryptocurrency market, what's wrong with the market?
Ethereum falling below $1,000
June 13, 2022, an unforgettable day.
Ethereum’s token Ether (ETH) fell to a low of $950 on Uniswap, and while ETH rebounded sharply after falling to $950, a bearish continuation setup for ETH/USD could be another attitude.
Some omen can also be seen when there is some extreme volatility and huge volatility in Eth. After crypto lending service Celsius announced that it was suspending withdrawals under "extreme market conditions", investors will show up panic selling occurred. At the same time, after this news happened, according to on-chain data, an anonymous whale sold about 93,000 ETH within six hours at a price of over $120 million.
Bad rumor news for ETH
No snowflake is innocent in an avalanche. Then the sharp fall of ETH has nothing to do with everyone here.
Vitalik is a Chinese, and Ethereum is a Chinese project. After Vitalik changed the Chinese name as Tunlin., When I saw this news on Twitter, I would say that this is completely "a picture for the beginning, and the rest is all made it up." As soon as the news is released, wherever there is a trending, there will be Justin Sun. Immediately claimed that to privatize ETH for 42 billion US dollars, the money is enough.
Capital is no longer optimistic for ETH
Zhu Su, founder of Three Arrows Capital, has deleted ETH, AVAX, LUNA, SOL, NEAR, MINA and other cryptocurrencies from his Twitter profile, and currently only "Bitcoin" is retained. These whale and institutions have all ran away. Is it still necessary to stay for personal? The success of an industry is inseparable from the support of all aspects, and if everyone starts to seek profit, this is the beginning of the decline of an industry.
In addition to Three Arrows Capital, according to data from WhaleStats, Ethereum whales bought out an average of 151 AAVEs worth $26,262, making it the third-largest crypto asset purchased by ETH whales in the past 24 hours. Also in the DeFi field, ETH whales are increasing their holdings of Compound (COMP), and some of the more powerful players on the ETH network are also increasing their holdings of Aave and Compound and other centralized altcoins.
Unsatisfactory market environment
The price of ETH has dropped a lot in the past week, but most of it has happened in these two days. One of reason is that the U.S. Labor Department reported that inflation hit 8.6% in May, the highest level since December 1981. Higher CPI also fueled investor concerns, which in turn forced the Fed to keep raising interest rates. At the same time, the government has slashed its $9 trillion balance sheet, which has also dampened interest in investing in riskier assets such as stocks and cryptocurrencies.
Not only is there no corresponding support from the government, the former Microsoft founder Bill Gates commented: "I like to invest in valuable things. The value of companies depends on how well they produce quality products. The value of cryptocurrencies is only based on a One person decides how much another person will pay for it." Later, Warren Buffett disagreed.
After that, people lost confidence in the crypto market due to the unfinished Russian-Ukrainian war and the global economic pressure following the coronavirus lockdown.
ETH miners are about to become unprofitable
For the first time since 2020, ETH mining has become unprofitable for many miners connected to traditional energy grids. The price of Ethereum keeps falling, while the price of energy is skyrocketing.
So this means that, in order to make a profit, the price of the token needs to rise sharply, or either the price of energy is reduced to make miners profitable, and to make miners profitable, the price needs to rise above $1,400 at least.
Extended Reading - Ethereum Blockchain Could Destroy ApeCoin
Recently, there was a interesting poll on whether the ApeCoin DAO should remain on the ETH blockchain. The result is that the ApeCoin DAO wants to move out of the Ethereum blockchain network, because the Ethereum blockchain developers have encountered many problems; and the investors want to stay and benefit from the additional new features of Ethereum 2.0 so that NFTs can get Secondary growth rate development.
Write at the end
Finally, back to the previous question, can the currency market still rise? I have always believed that the future of blockchain is worth looking forward to. This time, the collapse of the cryptocurrency is not an isolated event, and although there may be further declines in the future, historically, the stock market tends to rebound after a large decline. A bear market is not a reason for us to panic, but a reminder that we can properly diversify our portfolio, which is a good time to reduce risk, as well as let us know how much risk we can take and how much time we need to cover losses.