Yesterday, the compensation of Mentougou and the adjustment of US stocks accelerated the downward adjustment of Bitcoin. However, the market did not effectively lead to the collapse of the cottage market. Instead, the cottage market saw a significant increase. The cottage market that has fallen to the bottom has only one option, that is, to rise!
The market started to fall at 4 am today, and fell directly below the 60,000 mark to around 58,000. Starting from yesterday's highest point, Bitcoin fell by nearly 5,000 points in one day. Today we will analyze why it fell so much, find the reasons for the decline, and then analyze the market outlook and think about how to layout.
Yesterday's first big news was Mentougou. Mt.Gox disclosed that it plans to start BTC and BCH compensation in July. At the same time, Mentougou compensation will also be paid in batches. As for the selling pressure that the market is worried about, I don’t think it will be so terrible, and I even think it will not have any major impact. However, the market chose to fall at the first time yesterday, which is also normal. The market will choose to be bearish at the first time, and then slowly repair it if it is wrong.
Second, the US stock market performed poorly last night. The Dow Jones closed up 0.67%, the S&P 500 fell 0.31%, and the Nasdaq fell 1.09%. Nvidia (NVDA.O) fell 6.6%, falling for three consecutive trading days, and its market value fell below 3 trillion US dollars, lower than the market value of Microsoft and Apple. Digital currency concept plummeted, Coinbase (COIN.O) fell more than 6%
In addition to the above factors, Bitcoin itself is also in the stage of downward repair and adjustment. Since it fell below the support level of 63,000, I have always said that it will continue to adjust offline. Even without the above two reasons, the market will adjust, but the speed may not be so fast, and it can fall to around 58,000 in an instant
