On the morning of April 18th, Bitcoin crashed, plunging nearly $8000 in an hour, staging a crash.

At the same time, other digital currencies fell across the board, with ETH plunging 12% in 24-hour terms. BNB fell by 13.33%, Rippo currency by 20.87%, dog currency by 12.87%, and Lettercoin by 20.87%. Coe EOS plummeted 23.45%.

The rapid decline led to heavy losses for long investors. Within 24 hours, more than 470000 people burst their positions and 39.5 billion funds went up in smoke.

It is important to note thatAt the same time as the cryptocurrency market has improved recently, a regulatory storm may be coming. On Friday, Turkey's central bank banned purchases using cryptocurrencies and encrypted assets, citing possible "irreparable" damage and trading risks.

According to market news today, the US Treasury will charge several financial institutions with money laundering using cryptocurrencies, which may be one of the reasons for the sharp fall in cryptocurrencies.

Plunge of $8000, re-emergence of regulatory shadow

At around 11:00 on April 18, the recent bull Bitcoin flash crash, plunging nearly $8000 in an hour. Put on a crash-like market:

10:18: Bitcoin fell below $59000 for the first time since April 11.

11:20: Bitcoin continues to decline, falling below $58000.

11:22: Bitcoin fell below US $55000 per piece, down more than 8% on the day, Tai Fang fell below US $2150 per piece, and Ruibo coins fell more than 13% to US $1.34 per piece.

11:36: Bitcoin fell below $52000, down more than 15 per cent on the day.

It is worth mentioning that Bitcoin has continued to strengthen after breaking through $60000 recently, breaking the $64000 mark at one point on April 13, reaching as high as $64778, and then falling back for several days in a row.

Xu Tong, a senior analyst at Firecoin, told the Securities Times reporter thatThis Bitcoin bull market is accompanied by positive factors such as the release of macro policies, the entry of institutions, and the gradual compliance of bitcoin products. This week, when Coinbase went public, Bitcoin ushered in another round of rally.

But since then, there are no new positive expectations, the market lacks effective stimulus, at the same time, the early profit accumulation is too much, also caused a certain selling pressure, or caused today's sharp correction.

At the same time, other digital currencies fell across the board: in terms of a 24-hour decline, Yi Tai Fang fell 12%, the BNB fell 13.33%, the Ribo currency fell 20.87%, the dog currency fell 12.87%, and the Leiter coin fell 20.87%. EOS plummeted 23.45%.

It is worth noting that the price of USDT has risen to 7 yuan on some platforms, while the midpoint of RMB against the dollar is only 6.50, which may mean that there is a lot of bottom money on the way.

With the rapid decline of Bitcoin, long investors have suffered heavy losses. according to the latest data from Bitcoin Home, the number of positions has risen sharply in the past 24 hours, more than 470000 people have burst positions and 39.5 billion funds have been wiped out. The funds for the explosion of positions reached 538 million yuan in nearly an hour. Among them, BTC exploded 3.638 billion, about 70, 000.

The sharp fall comes amid market news that the US Treasury will charge several financial institutions with money laundering using cryptocurrencies, which may be one of the reasons for the sharp fall in cryptocurrencies. In fact, regulatory attitude has always been in the shadow of the cryptocurrency, and the large-scale entry of institutions since last year has added to regulators' concerns about the money laundering of the cryptocurrency.

Jake Chervinsky, general counsel of Compound, tweeted that it could not be trusted.The tweet itself is suspicious and the Ministry of Finance will not charge money laundering, which is the jurisdiction of the Ministry of Justice, he said. It is unusual to bring lawsuits against multiple financial institutions at the same time. In addition, criminal investigations must be kept strictly confidential and rarely disclosed to the public.

Earlier this week, Jesse Powell, chief executive of the US cryptocurrency exchange Kraken, said that US Treasury Secretary Yellen and European Central Bank (ECB) President Christine Lagarde and other financial officials have issued warnings about money laundering, terrorist financing and other illegal activities with bitcoin, and that future crackdowns and restrictions on cryptocurrencies will come.

Powell said in an interview on April 12thRegulators' misgivings about cryptocurrencies will not go away in the short term.The US government recently proposed an anti-money-laundering rule that requires people who deposit digital money in an electronic wallet to undergo identity checks if the transaction value exceeds $3000 or more.

In additionOn Friday, Turkey's central bank banned purchases using cryptocurrencies and encrypted assets, citing possible "irreparable" damage and trading risks. Bitcoin fell about 4% shortly after the news.

Reverse Bitcoin ETF comes out, which can be shorted without margin.

The recent hot spots in the coin circle, such as the listing of coinbase, BNB and the surge in dog coin, have obliterated a valuable piece of information: the world's first reverse bitcoin ETF has been listed on the Toronto Stock Exchange, which will provide investors with a way to short bitcoin without using margin accounts or short futures.

Horizons ETF announced the launch of BetaPro Bitcoin ETF (code HBIT) and BetaPro reverse bitcoin ETF (code BITI). The ETF was listed on the Toronto Stock Exchange (TSX) on April 15. HBIT and BITI offer long and reverse exposures to the Horizons Bitcoin monthly Rolling Futures Index (Bitcoin Front Month Rolling Futures Index), respectively. BITI is the first ETF in the world to offer exposure to reverse bitcoin futures.

Horizons ETF's reverse bitcoin ETF allows investors to take short positions in bitcoin futures, while BetaPro Bitcoin ETF, a sister product listed at the same time, under the symbol HBIT, will charge a fee of 1.00 per cent and track bitcoin futures, according to a statement by Stephen Hawkins, chief executive of Bitcoin.

This means that buying HBIT and BITI is as simple as buying stocks and other ETF through brokers. It does not require investors to open separate encrypted currency accounts. In addition, BITI will provide investors with a way to short bitcoin without using margin accounts or shorting futures.

It is worth noting that since 2013, the SEC has rejected all Bitcoin ETF applications on the grounds of preventing manipulation and crime. Canadian regulators are much more lenient in approving ETF, which tracks Bitcoin and SPAC, than in the United States. Less than two months ago, North America's first bitcoin ETF went public in Toronto with assets of $1 billion, or C $1.25 billion.

At the same time, applications for standard bitcoin ETF are growing in the U.S., with at least eight companies bidding, including Fidelity Investments (Fidelity Investments Inc.) and Galaxy Digital Capital Management (Galaxy Digital Holdings Ltd.). The first company to be approved may face huge demand, prompting issuers to continue to submit applications.

Profit selling pressure will become an upward resistance, paying attention to the turn of global monetary policy.

Market participants generally believe that the root cause of this Bitcoin bull market is that the loose monetary policies of the world's major central banks have brought high inflation expectations to the market since 2020, while the total amount of Bitcoin is capped at a fixed level. It is regarded as "digital gold" by some institutional investors and large companies, and that investing in Bitcoin can hedge against inflationary demand.

As a result, many listed companies and institutional investors in the market, such as Tesla, Inc., Meitu, Blackstone Group Inc and so on, began to buy and hoard bitcoin, which led to a rise in the price of bitcoin.

Recently, with the strong rise of Bitcoin, other digital currencies have also shown a general rise. ETH, BNB and others all set new highs. Some analysts believe that at present, after the entire encryption market has repeatedly reached new highs in Bitcoin, the mainstream currencies have also risen one after another, which is one of the performance characteristics of the middle and later stages of the bull market. With the rapid surge in market value, the selling pressure of the profit market in the future will become the resistance to continue to rise.

As for the follow-up development of the cryptocurrency, William, a senior analyst at the okex Research Institute, told the Securities Times that the key factors for the sustainability of the current Bitcoin bull market lie in two points: the monetary policy shift of the world's major central banks, or the global regulation of the cryptocurrency.

First of all, the current extremely loose monetary policy of major central banks is not sustainable. With the gradual recovery of the global economy, it is only a matter of time before monetary policy is adjusted.

Second, Turkey's regulatory ban is neither the first nor the last in the digital money market, and as encrypted digital currencies are accepted by more and more people, more countries will introduce specific regulatory measures for encrypted digital currencies.

"the above two key events will certainly happen in the future, but we do not know exactly when they will happen. This may be as the Dow theory explains: the main trends of the market can be predicted, but the specific trajectory advantage is uncertain. "William said.