What is the reason for this drop?
Is it a brief respite for the market, or a precursor to the end of the bull market?
On this issue, industry insiders have differing opinions.
One theory is that this drop is related to Google's latest quantum chip, Willow. Google claims that this chip can perform calculations that would take the current top computers trillions of years to complete in a very short time. This undoubtedly caused great panic in the cryptocurrency industry. After all, quantum computing has long been considered one of the biggest threats to cryptocurrency.
However, many professionals from leading projects and investment institutions have come forward to clarify that the development of quantum computing is unlikely to pose a threat to the cryptocurrency industry in the short term. Emin Gün Sirer, the founder of Avalanche, has bluntly stated that current quantum computing is only suitable for executing a limited number of tasks such as digital factorization and cannot reverse one-way hash functions. Mainstream blockchains, including Bitcoin and Avalanche, possess a certain degree of quantum resistance, so quantum computing still cannot threaten cryptocurrency in the short term.
In addition to the quantum threat theory, some analyses have also provided explanations for this drop from a market structure perspective. Benson Sun, the founder of the data analysis platform CoinKarma, has predicted that the future performance of ETH/BTC may turn weak. He combined historical market analysis to indicate that in each past cycle, whenever the whales on Bitfinex finished liquidating their long positions in ETH/BTC, ETH would usually peak in the short term.
Just yesterday, these whales had just finished liquidating their accumulated long positions since August. This may serve as a reference for one of the reasons for this drop.
ETH touched the high point near 4090 for the second time. Generally, a second touch cannot break through in one go; after this pullback, the probability of breaking through with a charge is very high. We should wait for the opportunity to buy at the bottom, as this is our last chance to get on board, and we must seize it! Today's observation: TROY, jto, CRV, ENA, 1mababydoge, buy below 888!
This week, we will lead fans to position for the next wave of the bull market; doubling your investment is very simple.
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