1/ ➮BTC has experienced a 40% correction in the past few weeks
It is important to understand that this correction happens in every bull run, it is normal and there are many bullish factors, so I don’t think the bull run is over yet
But you need to know why...
2/ ➮Recession concerns
The main driver of recent selling pressure is the looming threat of a U.S. (and global) recession.
Economic indicators are flashing warning signs, causing risk assets such as cryptocurrencies to suffer as investors turn to safer havens
3/ ➮Trump's presidency declines
Political markets are closely linked to financial markets
Trump's declining chances of becoming president are changing the status quo
Some investors are starting to reposition, concerned that other candidates' policies may not be as favorable
4/ ➮Japanese Yen Rate Hike
The Bank of Japan raised interest rates from 0% to 0.25% on August 5th - a major move as it was the first rate hike in years.
Many investors borrow yen at almost no cost to invest in other assets
This move is causing wider instability in the cryptocurrency space, leading to a crash in the crypto market
5/ ➮Geopolitical tensions
Heightened geopolitical tensions in the Middle East and the ongoing Gaza war have heightened market uncertainty.
The conflicts have heightened global risk aversion, causing investors to pull out of volatile assets such as cryptocurrencies in search of safer investments.
6/ ➮ Jump to sell
Jump Trading, a major player in the cryptocurrency space, closed some of its positions
Such a move by a large market player could have a significant impact, causing other investors to follow suit, sparking further selling.
7/ ➮ Gox Distribution
Long-awaited Mt. Gox distribution adds pressure to market
As creditors began to receive their payments, some began to sell their BTC, which increased the market supply and pushed down the price (now that the compensation is coming to an end, the impact is smaller)
8/ ➮The recent surge cleans up the bulls
The recent cryptocurrency price surge may have trapped many new long investors who expected further gains
As the market reversed, these positions were liquidated, exacerbating the downtrend.
9/ ➮Stock market correction
The employment report showed that the U.S. added 114,000 jobs last month, far below expectations
This led to a correction in the stock market, which also affected the cryptocurrency sector
10/ ➮Highly diffuse
As a result, we have been in an altcoin bear market since March
Each time, the highs and lows are updated to lower highs and lower lows
This also affects the cryptocurrency market
12/ ➮Taking all factors into account and the overall situation, I think the situation is not that bad and there are more positive factors.
Therefore, I prefer to take advantage of the current sentiment and buy on dips, especially in meme coins.
I suggest you don't do nothing when the local market is down, make more arrangements
This is the turning point: accumulate positions, learn new skills, develop yourself.
You can profit during bull markets, but the real wealth is created during corrections and bear markets.
The selection of coins is very important. If you only choose vc coins to build a position, you will lose wealth. You might as well type the coins you hold in the comment area. I will give you a reference. Please give a like and follow to get rich together in the bull market.
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$BANANA $SUN $SOL
