Selling pressure on Bitcoin
Grayscale Research pointed out that the decline of Bitcoin in June was due to the accumulation of multiple selling pressures. These pressures not only affected Bitcoin, but also spread to other cryptocurrencies. The main sources of selling include:
Mt. Gox bankruptcy estate: The trustee for Mt. Gox announced that it would begin repaying bitcoin and bitcoin cash in early July, raising concerns about a future sell-off.
German Government Liquidation: The German government began liquidating bitcoins confiscated in 2013, sending nearly 4,000 bitcoins, or about $220 million, to exchanges in June.
U.S. Government Sales: On June 26, the U.S. government transferred 3,940 Bitcoins ($240 million) to Coinbase Prime, further adding to market pressure.
Bitcoin miners sell off: Miners have sold about 1,560 bitcoins, worth about $100 million, in the past 30 days.
U.S. Spot Bitcoin ETP Outflows: In the second half of June, these products saw net outflows of $581 million.
The biggest market pressure comes from the continuous cashing out of altcoins by institutional VCs.
The decline of the altcoins was really painful. Bitcoin fell 5%, Ethereum fell 7%, SOL fell 9%, DOGE fell 11%, the altcoins plummeted, PEOPLE plummeted 33%, and both ORDI and SATS hit new lows in the adjustment.
1: Some copycat stocks have reached near their lows in the past two years. Such a weak new low is inevitable.
AEVO.ZK.YGG.BAKE.X.BIGTIME.W.SATS and others plummeted by about 20%, and BOME.METIS.ORDI.BSV.APE.NOT.AR.PEPE and others plummeted by about 15%. The copycat stocks all fell sharply, but there was still no panic selling.
2: Today is the first Friday of July, non-agricultural data, the market has fallen for two consecutive days, and it is likely to bottom out and rebound today. It is a mid-term adjustment in a bull market, and the decline of Bitcoin is not much, but the decline of many copycats is as high as 80%, and some are more than 90%.
Inscriptions, AI, new coins, runes, and weak junk coins that have skyrocketed in the early stages are all hardest hit areas.
In short, except for the four major mainstream currencies, Bitcoin, Ethereum, BNB, and SOL, the others are terrible.
In the past 24 hours, the entire network has liquidated $510 million
Amid the repeated market conditions of Bitcoin, according to data from Coinglass, in the past 24 hours, the total amount of cryptocurrency liquidations exceeded US$510 million (about twice that of yesterday), and more than 188,000 people were liquidated.
Strategies and suggestions for a sharp market crash that may help you:
1. Diversify your investments: Don’t concentrate all your funds in one asset or one market. By diversifying your investments across different asset classes, such as stocks, bonds, gold, real estate, etc., you can reduce the impact of a single market crash on your overall portfolio.
2. Maintain sufficient cash reserves: Hold a certain percentage of cash so that you have funds to seize the opportunity to buy at a low price when the market falls sharply, or to cope with possible capital needs.
3. Develop a stop-loss strategy: Set a tolerable loss level in advance, and when the investment loss reaches this level, sell decisively to limit further losses.
4. Strengthen risk assessment: Regularly assess the risk profile of the investment portfolio and adjust asset allocation based on market changes.
5. Pay attention to macroeconomic indicators: Pay close attention to macroeconomic indicators such as interest rates, inflation, economic growth rates, and policy changes in order to predict market trends in advance.
It should be noted that the trend of financial markets is difficult to predict accurately, and no response strategy can completely eliminate risks, but through reasonable planning and measures, losses can be reduced to a certain extent and the ability to respond to market changes can be improved.
