Shocking! A huge amount of BTC flows in Mentougou, and locked-in positions are pressing down.
The market is in danger before the US PCE data! Is the market crash coming?
This may be the analysis of the three key factors for the recent market decline:
(1) The Mentougou incident caused market turmoil
Recently, the cryptocurrency in Mentougou began to flow, and more than 8,000 BTC worth up to US$500 million were transferred from the Mentougou wallet to an unknown wallet. This move not only exacerbated the market's tension, but more importantly, there are billions of BTC waiting to be paid before October this year, which undoubtedly adds great uncertainty to the market and puts the market under downward pressure.
(2) High-priced locked-in positions affect market rise
The current market has accumulated a large number of locked-in positions above 70,000. After experiencing the previous plunge, these investors finally saw the market rebound and naturally hope to get out of the trap as soon as possible. Therefore, in the absence of super positive news, the existence of these locked-in positions makes it difficult for the market to break through the 70,000 mark.
(3) The market is waiting for the release of the US PCE data for April.
On Friday night, the US will release the PCE data for April. This important economic indicator has a significant impact on market trends. Therefore, before the data is released, large funds generally adopt a cautious attitude and dare not act rashly. This leads to a high probability of market volatility before Friday, and according to historical laws, the market is more likely to fall before the data is released.
In summary, the market has begun to fall from a high level recently, but a major crash is not expected.
Finally, if you cannot withstand a 99% drop in the currency circle, how can you talk about a hundredfold return!
