Bitcoin Running on Weibo as the Price Plunged Below $10K

In less than 24 hours, the price of bitcoin Bitcoin dips below to three-month low of $9960, according to data from qkl123.

The largest cryptocurrency then went viral on Weibo. Weibo trends show that the hashtag #Bitcoin# has been the eighteenth-most popular search terms on the country’s biggest social media platform.

Capital flows to CeFi from DeFi

Due to the popularization of DeFi mining, many people withdraw coins from the centralized exchange on a large scale, and tranfer into various kinds of DeFi tokens of Ethereum system, and lock them in the decentralized exchange, such as Uniswap to earn huge profits in liquidity mining.

The serious counterfeit coin problem that has long existed  in the centralized exchange, and it may be exposed in any time. It’s like a bank run short of money. (the so-called counterfeit coin issue refers to the amount used for trading far exceeds the real stock of the exchange).

“Yesterday, there were 92000 BTC flowing into the exchange, ranking the highest level in 37 days.”

According to Philip Gradwell, chief economist of Chainalysis, a blockchain analysis company, the data from bitcoin and cryptocurrency exchanges show that there is still selling pressure in the market at present.

While analysts at CryptoQuant, a data provider, believes that miners are moving bitcoin in an unusual amount, which may indicate that miners are seeking to cash in on their bitcoin rewards.

Analysts also attribute the fall of gold to the rising U.S. dollar. The European Central Bank’s warning against the surging euro caused investors to become cautious about the euro. The change in investor confidence further fueled the dollar, contributing to gold’s slump. The decline of the S&P 500 could have been coincidental, as the drop comes after a strong sell off from big tech companies.

“For most of 2020, short-term bitcoin price moves have been highly correlated to U.S. stocks,” Cory Klippsten, the chief executive of bitcoin buying app Swan Bitcoin, said via Telegram, adding he expects “any dips under $10,000 to be bought up voraciously.”

As DeFi is in its heyday, and most of the coin locked up comes from the exchange. The best way to limit withdrawals for exchanges is to dump the price . In the past 24 hours, the lock up of DeFi has been reduced by $700 million.

The day before yesterday, only the Huobi and OKex’s BTC  futures sold for  $120 million, and yesterday’s ETH large futures orders in Huobi also sold $125 million.

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