As market uncertainties disappear, the price of Bitcoin is rising at an alarming rate, and the current price has reached $69,400, thanks to institutional investors' continued buying of Bitcoin. However, Ethereum fell sharply last week and did not see the ETF listing market we expected. Instead, the Ethereum ETF experienced a $133 million outflow of funds on the second day of listing, causing the price of Ethereum to fall by 10%, from nearly $3,500 to a multi-day low of $3,200, causing the market to panic, especially as the market generally expected Ethereum to soar after the spot ETF was listed.

Many traders adopt a high-leverage contract trading strategy. When the market leverage is high, the profit-taking power of ETF holders is greater than the buying power of Ethereum ETF funds. The overall market funds have a net outflow and the market price has fallen. This sharp drop directly led to the forced liquidation of many contract positions. Everyone is too optimistic about the short-term benefits of the listing of Ethereum ETF.

I am still optimistic about the future price performance of Ethereum. After this round of deleveraging, the performance of Ethereum ETF in the past few days is actually quite good, maintaining a certain trading popularity, with a daily trading volume of about US$1 billion. Although it is not as popular as Bitcoin, as the second listed fund, its performance is already quite outstanding. It’s just that the market’s expectations were too high at the beginning. I am optimistic that Ethereum ETF will continue to bring more funds to the market in the future. Yesterday’s article "Ethereum ETF Landed, Is the Shanzhai Market Starting to Start?" also detailed the specific impact of the approval of the Ethereum ETF on the Shanzhai market. If you are interested, you can take a look.

As for Bitcoin, it also has a good upward environment. There are two phenomena worthy of attention. The first is that after Mt Gox users received Bitcoin compensation, creditors did not choose to sell in large quantities. A large proportion of people continued to hold them in their own cold wallets, showing that these old players have confidence in the long-term value of Bitcoin, and the previously worried large-scale sell-off expectations did not occur.

In addition, the US election is also affecting the price trend of Bitcoin. The price of Bitcoin continued to rise slowly last week, with the main buying coming from institutional investors. Bitcoin ETF funds were almost all net inflows, reaching US$500 million.

Bitcoin selling pressure slows

Of course, there was a market decline last week due to the transfer of compensation, but Bitcoin rebounded to near new highs within two days. In the next few months, Mt Gox will continue to distribute BTC and BCH to creditors' wallet addresses. We will still see compensation actions from time to time. Each time it occurs, it may cause a slight panic in the market. It may be used as a means to clear market chips. Highly leveraged investors should be more careful. In the long run, we still have high confidence in the price of Bitcoin.

General investors do not need to worry too much about the continued repayment of the Mt. Gox exchange. Even if there will be some slight selling pressure, this wave of sales will not be like the previous operation of the German government, which sold all Bitcoins at once. out, leading to a sharp market drop. Since these users who received Bitcoin have no urgency to sell in the short term, they can sell them slowly over a long period of time at various points in time. The current market liquidity is quite sufficient, and selling in batches will not Significant impact on prices.

In addition, the US interest rate cut is already a definite trend, but we believe that Bitcoin has not yet responded to the positive effects of the interest rate cut. After the market actually cuts interest rates, the price of Bitcoin is likely to hit a new high again. The current reasonable price of Bitcoin is still US$70,000.

Later, I will bring you analysis of leading projects in other tracks. If you are interested, you can click to follow. I will also organize some cutting-edge consulting and project reviews from time to time. Welcome all like-minded people in the cryptocurrency circle to explore together.