The recent market in the cryptocurrency circle has made many people begin to doubt their lives. The market continues to fall, a bit like a roller coaster that suddenly loses control. Everyone's mentality has changed from initial optimism to current suspicion and panic.
Let's talk about the reasons first. First, the liquidity of the market has begun to tighten, and the capital flow of major institutions has become cautious. To put it bluntly, there is less money in the market, and everyone is watching and unwilling to enter the market easily. In this case, the buying volume decreases and the selling volume increases, so naturally the price cannot be suppressed.
Secondly, the global economic situation is not optimistic. Although the Federal Reserve has temporarily stopped its troops, the shadow of interest rate hikes is still there. The expectation of interest rate hikes makes the market feel uncertain. Everyone is worried about the rising cost of funds, and the sentiment of selling and hedging is increasing.
In addition, there is selling pressure from some project parties. Recently, more and more projects have been unlocked, and many people choose to sell the coins they get as soon as they get them. Anyway, the unlocked coins are picked up for free, so they can be cashed out if they can. This selling pressure is like a snowball, rolling bigger and bigger, and directly bringing down market sentiment.
Some people may ask, is this situation going to collapse? My opinion is that it will not for the time being. Although there is not much good news in the short term, the market will not enter a long-term bear market immediately. Now it is more of a shock consolidation, and the market is looking for a new balance point.
However, one thing to note is that you should not have too high expectations in the short term. In this environment, it is more reliable to sell at high prices than to buy at the bottom. Don't hold the illusion that "it can rise again after falling". After all, the market is ruthless, and the price of making mistakes is to be educated by the market.
The current market situation is the combined result of tight funds, emotional panic, and project party selling. There may be some fluctuations in the short term, but there is no need to be too pessimistic. Remember, winning in stability is the kingly way, do a good job of risk control, and don't blindly follow the trend. There are many market opportunities, but only by waiting patiently can you seize those real opportunities.
