🔴｜Will Bitcoin fall further? Stay steady, this is a healthy market correction
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As BTC is preparing to challenge 110,000, it experienced a correction, briefly dropping below 92,000, while the major coin saw a slight decline. For altcoins, it was catastrophic, with ETH briefly falling below 3,100 USD, and coins like ADA, LINK, APT dropping by as much as 20%. Other altcoins faced significant halving in value.
This led to over 420,000 liquidations, with the amount of liquidated long positions reaching 1.2 billion USD❗
🔻 The main reasons for this crash are:
First, the latest dot plot forecast from the Federal Reserve indicates only two rate cuts by 2025, far below market expectations, disappointing investors and causing both US and A-shares to decline📉.
Second, the hawkish comments from Federal Reserve Chairman Powell have had an impact. Simply put, the Fed has no intention of buying Bitcoin or changing the law.
📍 However, we need not worry too much.
From the annual growth of Bitcoin, such a correction is healthy. Historical annual trends show that sell-offs often occur at year-end, as investors use losses to offset profits, reducing their tax burden.
The variations in the correction amplitude during Bitcoin's bull market cycles may reflect the significant demand brought by spot ETFs and the growing interest from institutional investors.
The sharper the market falls, the greater the opportunity; this is a chance to bet on a rebound. Just like when BTC dropped to 93,000 and immediately rebounded to 97,000. If you didn't seize the opportunity to enter during the rebound, it might be best to let the bullets fly for a while.
