At this stage, the market has a sense of silence, but the fact is just the opposite. It is currently a stage of logical transformation.
From the high point of 73,700, the price of Bitcoin has fallen for more than 122 days. Compared with the previous 21 years of decline, it has been a lot longer. It seems that it is in the rhythm of double tops, but will the market go down as expected?
Usually a bull market may have a 30% drop. If calculated from the high point, 30% is around 51,000.
At present, the sell-off in Germany has come to an end. Recently, it has been observed that ETFs have been in a state of continuous inflow, but the market has not rebounded or matched the increase.
The CPI released this month also tells us that the probability of a rate cut in September is a foregone conclusion. Instead, the market has begun to fall, which makes people confused.
In fact, it is not the case. We have noticed that the Russell 2000 has broken through the downward trend of 2 years and has formed a big positive line. This also means that small-cap stocks will go out of the market. Why will small-cap stocks go out of the market? The main reason is that small-cap stocks are good for interest rate cuts. After all, small-cap stocks are very sensitive to liquidity, and big cakes are also a kind of target that is sensitive to liquidity. In addition, after falling for several months, there is a probability that this long period of decline will end.
Now the big technology in the US stock market is in a large correction. Institutional funds have stopped profit from big technology and all funds have flowed to small-cap stocks, so relatively speaking, they will benefit greatly. For the currency circle, I am not sure whether it is an opportunity, but it is worth trying.
Another point to remind is that it takes time for big funds to enter the market. The turnaround of a giant ship cannot be completed in a short time, but it can be seen that there is already a trend of turning around.
