Cryptocurrency markets are down across the board today! Is it time to add to your position?

On July 5, the cryptocurrency market generally fell, with mainstream cryptocurrencies such as $BTC Bitcoin, $ETH Ethereum, and $BNB Binance Coin falling by approximately 10% in the past 24 hours.

According to CoinMarketCap data, as of 3:30 pm on the 5th, the price of Bitcoin fell below US$55,000, with a quote of US$54,000. It fell 7.6% in the past 24 hours and fell 12.05% in the past seven days, falling to the lowest level since February this year. .

Popular cryptocurrencies such as Ethereum and Binance Coin are also in the red. As of 3:30 pm on the 5th, Ethereum (ETH) was quoted at US$2,852.59, falling below the US$3,000 mark, down 10.53% in the past 24 hours, and 17.06% in the past seven days. Binance Coin (BNB) is quoted at $469.18, down 12.06% in the past 24 hours and 18.62% in the past 7 days.

According to data from CoinGlass, a total of 234,500 people were liquidated in the past 24 hours, with a total liquidation amount of $679 million. Among them, the proportion of liquidation of long orders is significantly higher than that of liquidation of short orders. Market sentiment has clearly turned negative. CoinGlass's Fear and Greed Index shows that the current market fear sentiment is as low as 29 points, reaching the lowest point since January 2023.

Analysis of the reasons for the decline

This decline may be related to the "Mentougou incident" and the German government's sale of Bitcoin. A large amount of Bitcoin flooded the market, adding to downward pressure on prices. Additionally, multiple governments are dumping large amounts of seized cryptocurrencies on the market. Recently, the U.S. government and the German government have begun selling Bitcoin. In late June, the U.S. government dumped 3,940 Bitcoins seized in 2014, worth approximately $240 million. Since June 19, the German government has sold 7,583 Bitcoins worth $435 million. On July 4, the German government transferred another $172 million worth of cryptocurrency to cryptocurrency exchanges, causing a sharp drop in the price of Bitcoin.

Personally, I believe that the market is in the second half of its mid-term clearing. Looking at the one-year cycle, several key factors such as interest rate cuts and the structural positive factors of the US election remain solid.