A-share market bloodletting caused the market to plunge? Analysts believe it is due to the effect of Ethereum Constantinople upgrade

ETH prices have seen some overwhelmingly positive moves over the past month, surging from a low of $104 to a high of over $160. Analysts believe that the surge in ETH prices could be partly due to the upcoming Constantinople hard fork, which will provide multiple enhancements to Ethereum and will reduce future inflation, which could be good for the cryptocurrency in the long run.

Nonetheless, many analysts are now warning traders that ETH could face increased selling pressure during or after the event, in line with the age-old mantra many traders have been following — “buy the rumor, sell the good news.”

Ethereum's upcoming Constantinople hard fork causes ETH to plummet

The cryptocurrency market suddenly collapsed without warning last night. According to QKL123 market data, Bitcoin fell by more than 8%, and mainstream currencies such as Ethereum, Ripple, and Litecoin generally fell by more than 10%. Among the top 1,000 cryptocurrencies by market value, only 86 rose, while 914 fell.

From: QKL123

Alex Kruger, an economist who focuses on cryptocurrencies, recently spoke about ETH's current price action, noting that a disturbing trend is emerging, with its ETH long/short ratio currently at its highest level since before the crash in November last year.

“The last time the ETH long/short ratio was this high was before the 60% crash in November last year. The Constantinople upgrade is coming, and cryptocurrencies usually surge before the fork and plummet after the fork. The current cryptocurrency surge is driven by ETH .”

A-shares surge, are all cryptocurrency traders going to stock trading?

In recent days, the A-share market has gradually strengthened, and the cryptocurrency market plunged last night. According to QKL123 data, Bitcoin had a net outflow of 394 million yuan in 24 hours, 3.961 billion in 7 days, and ETH had a net outflow of 287 million yuan, 863 million in 7 days. Some analysts believe that the large amount of funds in the cryptocurrency market flowed into the stock market, causing the plunge.

As of press time, A-shares continued to rise, with the Shanghai Composite Index up 4.9%, the Shenzhen Component Index up nearly 4.92%, and the ChiNext Index up 4.9%. At the same time, the trading volume of the two markets continued to expand, exceeding 1 trillion yuan. Among them, the main force of the blockchain sector had a net inflow of 660 million yuan, and 25 stocks in the sector hit the daily limit.