Why did the market fall?

I will tell you two reasons for your reference only. Of course, this is hindsight. If you don't like it, please don't criticize. It's just to make everyone clear about the reasons for this wave of callbacks.

Reduce the fear of the unknown.

The first is to shrink the balance sheet. After the CPI data came out, the market was jubilant and the market also rose. However, you may not have read the Fed's speech report carefully. In addition to a series of clichés to control inflation, it was also mentioned that the holdings of US bonds, institutional bonds and institutional mortgage securities will continue to be reduced.

The translation means that I am going to shrink the balance sheet. Shrinking the balance sheet means that the Fed sells the bonds in its hands and takes back the money in the market. This is actually the same as raising interest rates.

After the money is taken back, there is less money in the market and liquidity is reduced, which is equivalent to an interest rate hike. (Note: Expanding the balance sheet means that the Fed takes the printed money to the market to buy bonds. The continuous increase in bonds and the increase in money in the market achieve the purpose of double increase)

So the market has been digesting this negative news for some time, and the market seems to be chattering, which makes many friends feel fear.

Of course, there is another reason, that is, the small miners surrendered.

Many people are encouraging everyone to participate in Bitcoin mining. With the promotion of various third-party companies, it is booming.

But a heartbreaking fact is that the suppression of small miners by large miners has led to the bankruptcy of small miners. As a retail investor, can you be sure that you can participate in the mining pool of large miners? Miners' income comes from mining rewards and transaction fees.

In other words, if miners want to make money, they must be based on the premise of rising transaction fees, rising Bitcoin prices, and falling mining costs. But what is the current situation?

The market has been falling continuously, investors are not in high trading sentiment, and the transaction volume and frequency have decreased, so transaction fees are naturally impossible to rise. The price of Bitcoin has been adjusted from 70,000 to more than 65,000. In addition, after the Bitcoin halving, a large amount of computing power has been added, and large miners use better, more advanced, and more powerful mining machines. The living space left for small miners is very small.

Again, if you take the initiative to find me, I will take you ashore, and you just lie down!！！

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