According to coinglass data, in the past hour, the entire network had a liquidation of 93.64 million US dollars, long positions had a liquidation of 91.65 million US dollars, short positions had a liquidation of 1.99 million US dollars, BTC had a liquidation of 26.48 million US dollars, ETH had a liquidation of 16.97 million US dollars, and SOL had a liquidation of 4.81 million US dollars.
Nearly $100 million in liquidations hit investors in one hour
According to Coingecko, the price of Bitcoin plummeted to $55,555, with the sudden drop within an hour of Asian stock market going live. Earlier, the US stock market performed poorly, with technology giant Nvidia dragging the Dow Jones Industrial Average down 600 points. Across the Pacific, the Nikkei index opened 1,000 points lower than the previous trading day's close. Bitcoin rebounded slightly and is currently trading at $56,463, down nearly 3% on the day.
Insufficient funds in the market, so funds from outside the circle come to make up for it. Although for crypto market investors, excessive attention to macro factors can easily lead to missed opportunities, it must be admitted that macro factors still greatly affect the volatility of the crypto market. The most important example is that before and after the release of non-agricultural employment data, CPI data and Federal Reserve data, BTC and the entire market often have a large amplitude in a short period of time.
Market conditions
It has become a common consensus among crypto traders that 2024 will be a repeat of 2019. From the first rate cut by the Federal Reserve on July 31, 2019 to the end of the rate cut and the start of QE quantitative easing in March 2020, the crypto market has gone through a complete 3-wave decline structure, interspersed with an ultra-short autumn market and a spring market that can be described as a bull market trap. The market trend for the next period of time is probably like this.
In the stage when market trading is expected to decline, what strategies should we crypto market investors adopt to deal with it?
1. Diversify your investments: Don’t put all your money into cryptocurrencies, but consider other asset classes like gold, bonds, primary markets, etc.
2. Regular investment: adopt a fixed investment strategy to spread out the buying time and reduce the overall entry cost
3. Focus on fundamentals. Study the technology, team and application scenarios of crypto projects and choose projects with long-term value.
4. Set stop loss: Set a stop loss point for each transaction to control the loss of a single transaction
5. Maintain liquidity: Keep enough cash to cope with market fluctuations and seize potential opportunities
6. Pay attention to the macro economy: Pay close attention to macro factors such as the Fed's policies and inflation data to predict market trends
7. Hedging risks: Consider using derivatives such as options and futures to hedge risks
8. Contrarian investment: consider buying on dips when the market is in a panic, but keep your position under control
9. Pay attention to regulatory trends: Pay close attention to changes in regulatory policies on cryptocurrencies in various countries
10. Long-term holding: adopt a long-term holding strategy for promising projects and do not be easily affected by short-term fluctuations
To sum up, short short and long long, the basic principle is to do a good job of risk control and wait for the arrival of the super bull market. Before the recession expectation becomes a reality, don't go all in on the crypto market, but try to diversify your investments. At the same time, prepare enough U and wait for the opportunity to buy at the bottom, and use the DCA fixed investment method to buy at the bottom.
Summarize
It takes a lot of patience and sufficient cash flow to get through this stage. At the same time, you must also concentrate on investment research and not be swayed by the impetuous market sentiment and miss the historical opportunity to buy high-quality white horses and growth projects. In terms of growth projects, focus on investment opportunities in sectors such as advanced functional DeFi protocols, chain abstraction, and ZK Prover networks related to Ethereum Pectra upgrades, and also pay attention to opportunities in middleware AI Oracle in the AI+Crypto field.
In addition, as a hedge against the growth risks of the Ethereum ecosystem, the white horse projects of the Bitcoin L2 and Solana ecosystems also need more attention and configuration.
I don’t know where the bottom of Bitcoin is, but here’s what I do know:
1. Liquidity will come sooner or later. The interest rates raised by the Federal Reserve in the past are what the Federal Reserve will inevitably release in the future, and the new president’s inauguration is a good opportunity.
2. Based on past election years, October-November is generally the bottom of the market
3. When Bitcoin reaches a certain level, altcoins will naturally follow suit
