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There was a sudden sell-off in the cryptocurrency market.

In the early morning of August 28, the cryptocurrency market plummeted. Market data showed that Bitcoin once fell below the $58,000 mark this morning, with a daily drop of more than 7%; Ethereum once fell below the $2,400 mark, reaching a low of $2,388, with a daily drop of more than 9%.

CoinGlass data shows that in the past 24 hours, a total of 85,563 people in the entire virtual currency market had their positions liquidated, with a total liquidation amount of US$314 million.

In the early trading of the U.S. stock market overnight (late August 27, Beijing time), the virtual currency market also had a small sharp drop. Perhaps affected by this, the concept stocks of cryptocurrency in the U.S. stock market fell collectively. Wind market data showed that Marathon Digital closed down more than 4.36%, Canaan Technology fell more than 3.77%, MicroStrategy closed down 4.69%, Coinbase closed down 2.79%, Riot Platforms closed down 5.5%, and CleanSpark closed down 5.67%. After the U.S. stock market closed, the above stocks fell further, with Marathon Digital and MicroStrategy both falling more than 3%.

Nasdaq seeks SEC approval for Bitcoin index options

Nasdaq, an exchange operator, said on Tuesday that it is seeking approval from the U.S. Securities and Exchange Commission (SEC) to launch and trade bitcoin index options. The exchange said the proposed Nasdaq bitcoin index options will track the CME CF Bitcoin Real-Time Index, which was developed by CF Benchmarks to track bitcoin futures and options contracts offered by exchanges operated by CME Group.

Cryptocurrency market has recently experienced a huge shock

In fact, the cryptocurrency market has been on a roller coaster ride since Federal Reserve Chairman Powell’s speech last Friday.

On August 23rd, local time, Federal Reserve Chairman Powell announced at the "Global Central Bank Annual Meeting" that "the time has come for policy adjustments", which was interpreted by the market as the clearest signal of interest rate cuts so far. He also believed that the US economy is growing at a "steady pace" and that confidence in inflation falling to 2% has increased, easing concerns about economic recession. He did not mention "gradual" interest rate cuts, leaving room for more substantial policy adjustments.

After this statement, the cryptocurrency market began to rise rapidly. Bitcoin rose from around $60,000 to $65,000 on the same day. After a brief adjustment, it once broke through the $65,000 mark on August 26. Other cryptocurrencies also showed a similar trend. At the same time, $251 million of funds flowed into spot Bitcoin exchange-traded funds (ETFs) last Friday.

However, Bitcoin then began to fluctuate and fall, and accelerated its decline until early this morning. Institutional analysis believes that major tokens are digesting the boost they received last week when Powell hinted that the benchmark interest rate would be lowered.

Analysts have previously pointed out that the mining cost for Bitcoin miners is as high as US$72,224 per coin, which is much higher than the current price of Bitcoin, which will create selling pressure on the market.