Mentougou is just as expected, so hold the spot patiently and wait for rotation!
As market uncertainty dissipates, the price of Bitcoin has been rising rapidly, and now it has soared to $69,400. Behind this, it is all the credit of institutional investors, who have been buying Bitcoin.
On the other hand, the performance of Ethereum last week was a bit unsatisfactory. The promised ETF listing did not come, but on the second day of listing, it encountered a large withdrawal of $133 million in funds. The price directly plunged 10%, from nearly $3,500 to $3,200. The market was panicked, especially those friends who were waiting for the ETF listing to rise sharply.
Many traders played with high leverage. This fall directly forced liquidation of high leverage. Everyone is still too optimistic about the short-term effect of the listing of Ethereum ETF.
I am still optimistic about the long-term trend of Ethereum. After this round of deleveraging, the Ethereum ETF is still strong, with a daily trading volume of about $1 billion. Although it is not as popular as Bitcoin, as the second listed fund, this performance is already very good.
Let's talk about Bitcoin. Its upward momentum is also good. There are two points that are particularly interesting: First, after the Mt Gox users received the compensation, most of them did not rush to sell, but deposited it into cold wallets, which shows that the old players are still very confident in the long-term value of Bitcoin. The other is that the US election is also adding fuel to the Bitcoin price. Institutional investors continue to enter the market, and the funds of the Bitcoin ETF are also net inflows, which are hundreds of millions of dollars.
The selling pressure of Bitcoin is not so great now. Even if there are small fluctuations caused by the transfer of compensation, it will rebound soon. In the future, Mt Gox will continue to issue BTC and BCH to creditors. Although each issuance may make the market a little nervous, it will not be like the previous large-scale sell-off by the German government, and the impact will not be too great. Now the market liquidity is sufficient, and these Bitcoins are sold in batches, and the price will not be affected too much.
The US interest rate cut is a foregone conclusion. Although Bitcoin has not yet fully reflected this positive news, when the interest rate cut really comes, the price of Bitcoin may reach a new high. In my opinion, the reasonable price of Bitcoin now should be around $70,000.
