The market has started to fall again in the past two days. People who trade contracts in such a market are the most uncomfortable. They are cut off by a wave of rapid declines, resist orders, and are liquidated. They think that the decline has finally stopped and go long. Before they can recover, they are liquidated again by the decline... Your loss loopholes are getting bigger and bigger, and eventually they are on a road of no return.
The three main reasons for this round of decline are:
1. The Mentougou incident finally received compensation. After the compensation, the market may face selling pressure. Even if not all investors who received compensation will sell, short-term partial cashing is inevitable
2. The German government sells off seized Bitcoin
3. After the rapid decline, the battle with miners. The current average price of Bitcoin for miners has reached around US$55,000. The law of capital profit: big fish eat small fish
Let's rationally analyze the above three points. Can it cause the price of Bitcoin to continue to fall further?
1. Impact of the compensation for the Mentougou incident: Although the compensation involves not all retail investors, retail investors have limited cash out, which is difficult to cause major market turmoil and only arouses short-term fluctuations.
2. Considerations of the government's sale of Bitcoin: The sale of Bitcoin by the governments of the United States, Germany and other countries may be a specific strategy, not a comprehensive sell-off signal. Retail investors should treat it rationally and avoid blind panic. In the long run, Bitcoin is recognized as "digital gold", and the country may increase its holdings in future strategies to lay out the virtual economy.
3: The battle between capital and miners. As the cost of Bitcoin mining continues to increase, the average cost of mining is currently around US$55,000. Will it drop directly to US$30,000?
The purpose of capital is to better absorb chips and win more space for yourself. The purpose is not to make this game unplayable and to make yourself unable to play. Only people with too smart brain cells will do such things.
The reason for the big drop that the outside world is panicking about is that it looks like it is half dead on the surface, but it actually depends on whether it can stand firm.
In addition, don't just focus on the selling side, the buying side cannot be ignored.
A large amount of funds in Bitcoin ETF have been buying positions at low prices and absorbing chips.
Ethereum ETF will also usher in results from July 8 to 15.
Investment is a manifestation of comprehensive results. If you only focus on one part, you will be blinded by one leaf.
For more latest market analysis, if you don't know what to do with the current market, find May
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