The US election is approaching, and Bitcoin is also in a critical stage of high volatility. Taking advantage of the weekend with no market movements, I will share some insights on the future trends that will help you achieve profits.
First, let's talk about this recent crash.
Previously, when I analyzed small cryptocurrencies, I mentioned being cautious about potential negative factors in the market. Currently, cryptocurrencies are considered risk assets rather than safe-haven assets; regulatory scrutiny and geopolitical turmoil can trigger panic, leading to accelerated sell-offs and sharp declines.
Sure enough, news about the US Treasury considering sanctions on Tether and Israel's military actions quickly sparked panic, resulting in a market crash.
Now, let’s discuss some of my insights.
I do not hold a pessimistic view; instead, I believe that the panic-induced sell-off often creates a 'golden pit.' Previously, a series of news events caused panic that led Bitcoin to drop to $49,000, but it later rebounded to $70,000.
At the same time, institutions are now buying large amounts of Bitcoin every day; they are not doing it for charity. They are betting on the larger trend, so they cannot ensure their buying positions are at the bottom, while we, as retail investors, can flexibly buy Bitcoin at lower prices but often end up with losses because we cannot hold on like institutions do.
Don't forget, there are also interest rate cuts and the election as factors; isn't the decline also providing an opportunity to buy at low prices? Of course, excluding worthless coins.