"Grayscale faith" collapsed, Bitcoin plummeted on Thanksgiving Day

It was so close, and suddenly it collapsed.

At 11:30 am on November 26, Bitcoin suddenly plummeted, falling from a low of 18,913 to 17,125, staging a thousand-dollar crash.

In nearly an hour, the contract market had a liquidation of 367 million US dollars.

Many cryptocurrency traders have already anticipated this sudden plunge. The reasons are: ① Today is Thanksgiving, and Grayscale is not working. ② OKEx will open withdrawals tomorrow, and there is a demand for capital to flee. With two major negative factors hanging in the balance, it would be abnormal if the market did not fall.

When the U.S. stock market closed last night, GBTC, which is linked to the Grayscale Trust, fell sharply, which actually laid the groundwork for today's BTC price plunge.

Another reason is that breaking through long-suppressed historical highs is never achieved overnight.

Indeed, Bitcoin is within reach of the $20,000 mark in 2017. On November 24, it began to charge towards the high point of $19,000, intending to seize the commanding height of $20,000 that had been lost for three years.

Just as everyone was looking forward to it, the market took a sharp turn for the worse.

In fact, as the market has developed to this point, many community leaders have begun to remind people to pay attention to risks.

HelloEOS founder Zi Cen said on Weibo: The previous high has always been a very critical psychological position, because breaking the previous high means that all the locked-in shares have been thrown away, and there is no more pressure upward, only the sea of ​​stars. Therefore, I always think that a one-time breakthrough is a bit unrealistic. The first time it is infinitely close, the callback accumulates power, the second breakthrough, the retracement is confirmed, and then the manic bull market is completely opened, which is what I think is the perfect script.

Jiang Zhuoer, founder of Litecoin, said: I feel that the previous high is not so easy to break. From now on, there should be a 30% correction, and then the previous high can be broken in mid-January. The big leeks (institutional investors) are about to be beaten by the volatility of BTC.

In addition to the above three reasons, there is also unconfirmed news that the "Grayscale Faith" is facing collapse.

News broke this morning that Coinbase CEO Brian Armstrong took to Twitter to express his concerns about rumors that U.S. Treasury Secretary Steven Mnuchin is planning to enact new regulations on non-custodial crypto wallets before his term expires.

The news then began to spread among Chinese user groups.

A Weibo user said that a large portion of the Bitcoin that Grayscale buys every day comes from borrowed coins from institutions and large investors, and is not actually purchased from the market.

If this is true, Grayscale may not have really changed the supply and demand relationship of the Bitcoin market. Then the "Grayscale faith" that has just been established in the currency circle may collapse, and the "Grayscale bull" that people rely on for trust will be out of the question.

As of press time, the price of BTC has rebounded from $17,000 to $18,000. How the market will trend in the future needs further observation.