Top trader Eugene: Worried about a deep economic recession, it is recommended that the priority now is to preserve assets
On August 6, top trader Eugene Ng Ah Sio shared some of his long-term views on market operations on social media, mainly including:
1. I am generally reluctant to actively go long when there is a lot of uncertainty and weakness in the market.
2. I have bought altcoins before, but I set a risk limit and stopped buying after Bitcoin fell below $60,000. I will not buy these altcoins again in the foreseeable future.
3. This decline is a combination of US election uncertainty + unwinding of yen carry trades. But I am most worried about a deep recession, as this usually triggers a deep stock market bear market, and cryptocurrencies have never experienced such a situation. We don't know how cryptocurrencies will perform in this environment, but if the current PA is a signal, then people will lose a lot of money by imitating too quickly.
4. Despite the sharp decline in recent weeks, I still see a fair amount of complacency in the market. Bulls are buying in from the highs, thinking this is a black swan event and once everything settles down, crypto will rise in a V shape. It is possible, but the longer we spend here, the more uneasy these players will become.
5. As always, I recommend capital preservation as a top priority in this situation. But since the beginning of August, market participants have basically been playing the game at legendary difficulty.
