news

한어Русский языкEnglishFrançaisIndonesianSanskrit日本語DeutschPortuguêsΕλληνικάespañolItalianoSuomalainenLatina

Editor of Every Economic Report: Du Yu

Against the backdrop of tense international situation, risky assets have been hit by a sell-off. In the past 24 hours, the price of Bitcoin fell from $66,700 per coin to below $63,000 per coin.

As of 22:00 on August 1, the price of Bitcoin was $64,400 per coin, down nearly 3% in 24 hours. Other cryptocurrencies also fell sharply, with Solana falling more than 8%, Dogecoin falling nearly 5%, Ethereum and Cardano falling more than 4%, and BNB falling nearly 3%.

Image source: Visual China

It is worth noting that Bitcoin rebounded after falling below $63,000. As of press time on August 2, Bitcoin was trading at $65,000, up 1.15%.

Bitcoin's ups and downs caught investors off guard. According to Coinglass data, in the past 24 hours, the total number of people who had their positions liquidated on the cryptocurrency network exceeded 100,000, with a total liquidation amount of US$292 million (about RMB 2.1 billion).

Recently, the price of cryptocurrencies has fluctuated dramatically. On the evening of July 29, Bitcoin once rose to $71,000 per coin, breaking through the peak price of $70,000 per coin after two months. At that time, the main factor driving Bitcoin's rise was that US presidential candidate Trump publicly voiced his support for cryptocurrencies.

Former US President Donald Trump said if he were to return to the White House,He will ensure that the government retains 100% of the Bitcoin it owns and will list Bitcoin as a U.S. strategic reserve asset.

“For too long, our government has been violating a fundamental rule that every Bitcoiner has memorized:Never sell your Bitcoin,” Trump said during his keynote speech at the Bitcoin Conference, the largest bitcoin conference of the year, in Nashville.

Image source: Screenshot of CNBC report

According to Reference News, Quartz Financial Network reported that Trump announced on May 21 that he would accept Bitcoin, Ethereum, Dogecoin, Solana and other cryptocurrencies as donations. He will become the first presidential candidate to accept digital currency donations. Earlier this month, the former president announced at a party at Mar-a-Lago that he would promote cryptocurrency into the 2024 election.

According to the Securities Times, Trump has previously made several statements in support of cryptocurrencies. The latest draft of the Republican Party’s platform explicitly calls for “ending the suppression of cryptocurrencies” and mentions opposition to the launch of central bank digital currencies, defending the right to mine Bitcoin, and defending the right to custody and free trading of digital assets.

However, Bitcoin has fallen back from its high point recently.The main factors include the tense situation in the Middle East, which has led to increased risk aversion among investors, and the possibility that the US government may sell a batch of seized crypto tokens in the near future.

On July 31, local time, the leader of the Palestinian Islamic Resistance Movement (Hamas), Ismail Haniyeh, was assassinated in Tehran, the capital of Iran. Iran condemned Israel's assassination on the same day.New York TimesAccording to a report by Reuters, three Iranian officials with knowledge of the matter said that Iran's Supreme Leader Khamenei has ordered a direct attack on Israel in retaliation for the assassination of Hamas's top leader Haniyeh in Tehran. After the above incident, gold and oil jumped sharply, while risky assets such as Bitcoin fell sharply.

Veteran trader and chart analyst Peter Brandt tweeted on July 17 that despite Bitcoin’s recent rebound, we must be wary of the potential downside risks shown on the chart.

JPMorganAnalysts warn that any recovery in the cryptocurrency market is likely to be tactical rather than the start of a sustained bull run. This is because the price of Bitcoin is now too high, not only relative to its production cost (currently around $43,000), but also from a volatility-adjusted perspective relative to gold, which is currently at $53,000. The analysts wrote in a report.

The JPMorgan analysis also highlights a key metric that tracks the difference between the price of Bitcoin and its implied price, which matches the market value of gold held by the total private sector (adjusted for volatility).

JPMorgan explained that the indicator now points to a mean reversion around the zero line, thus limiting the potential for Bitcoin price gains in the long term.

Daily Economic News, Securities Times, Reference News, and public information

Daily Economic News