Editor's Note: This article comes fromNakamoto Shallot (ID: xcongapp), Odaily is authorized to publish.

Editor's Note: This article comes from

Nakamoto Shallot (ID: xcongapp)

, Odaily is authorized to publish.

Under the "combined forces" of internal and external troubles, Bitcoin's short-term selling pressure is full, and there is a sign of a sharp drop on the weekend last week?

In the past two days of the weekend, the performance of the cryptocurrency market was bleak. Bitcoin briefly stood at 9,100 US dollars not long ago and then fell rapidly. The market once dropped to around 8,000 US dollars. The cryptocurrency market has changed drastically. Regarding the reason for this sharp drop that surprised the market, market analyst Jacob Canfield sorted out three key factors affecting the short-term market trend, and these three points led to the concentrated emergence of selling orders in the short term , and contributed to this wave of rapid decline in the short term.

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Reason 1: The global outbreak of the new coronavirus has had a severe impact on global financial markets

The U.S. stock market, which has performed very eye-catchingly in the past few months, has almost collapsed in recent weeks. The Dow has set its largest one-day drop in several years and has fallen by as much as 15% from its high point. The U.S. stock index futures in early Asia-Pacific trading There was an astonishing drop, the Dow plummeted 1078 points, the S&P 500 index mini futures fell more than 4.4%, plummeted to 2819 in the intraday, and even triggered the circuit breaker trading limit.

U.S. Treasury prices rose further and yields continued to plummet. The implied yield of 10-year U.S. bonds fell below 0.5% for the first time in history, setting a record low of 0.707% set last Friday, and the yield of 30-year U.S. Treasury bonds fell below 1% simultaneously.

Although some analysts in the market believe that the plunge of Bitcoin has little to do with other markets, since the outbreak of the epidemic, the trading volume of mainstream cryptocurrency trading platforms has shrunk significantly, which means that market liquidity is obviously affected by the external environment. Influenced by the impact of such a lack of activity in the market, it is not surprising that this kind of sharp decline and diving performance during the weekend.

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Reason #2: Bitcoin miners’ behavior suggests a bear market

The willingness of bitcoin miners to sell mined bitcoins has declined significantly in recent times. Charlie Morris, founder of ByteTree, an encryption market analysis agency, pointed out that the number of bitcoins sold by miners was significantly lower than the number mined in the recent period, and this behavior is a kind of "protection" behavior for the market, because if they continue to Selling Bitcoin is likely to make the already very weak market even worse. To a certain extent, this shows that miners believe that there is a risk of further decline in Bitcoin in the future. From the perspective of historical performance, miners will only perform similar operations in bear markets.