I personally think the specific reasons for the decline are:
1. Liquidation, retracement, and reasonable callback required by the market. I have actually thought about the impact of Bitcoin breaking through 100,000 on the trend of the cottage industry before. I think the later Bitcoin breaks through 100,000, the greater the benefit to the cottage industry. Even a slight decline in Bitcoin is better than a breakthrough. So after Bitcoin broke through 100,000 yesterday, my opinion was not good, and I also made a small reduction in positions. Although from the overall sentiment and the K-line before yesterday, there was no top structure, I still made a judgment to reduce positions.
2. The recurrence of fear of heights. Some friends may ask why there was no fear of heights when it went from 73,000 US dollars to 99,900 US dollars before, why now? Because when it first reached 99,900 US dollars, everyone was still immersed in the FOMO sentiment of Trump's election, but the FOMO sentiment gradually dissipated as the election was almost over for a month. This is why it has been hovering around 95,000 US dollars last week.
3. Mentougou transferred more than 20,000 $BTC
This is the news from last night. I personally think it is not very reliable. The impact of Mentougou has long passed. The last 20,000 or so are not enough for the ETF to eat for three days. Moreover, Mentougou is just repaying and will not cause concentrated selling.
4. Tonight's non-agricultural data will be released tonight. The unemployment rate and wage level are data that the world is paying attention to. The low unemployment rate and high wages indicate the strength of the US economy, but may reduce the probability of the Fed cutting interest rates in December. The high unemployment rate and low wages are the current market expectations. Although it can increase the probability of the Fed cutting interest rates, it is also expected that the US economy may not be as stable as imagined, especially the unemployment rate. If it rises, it may trigger a new round of market concerns about economic recession. So it is not ruled out that it is the reason for the retracement. In general, the decline of Bitcoin is reasonable.
There is no market that only rises and does not fall. The decline in one day is 15,000 points, but today's highest increase is nearly 8,000 points. The current Bitcoin price can only be regarded as a slight decline compared with yesterday's low.
