Warning of a sharp drop in the currency circle on May 19! How should Bitcoin respond?
On May 18, 2021, the central bank and the Financial Industry Association issued an announcement requiring relevant institutions not to conduct business related to virtual currencies. The next day, on May 19, the currency circle plummeted! Bitcoin fell by as much as 34% in a single day, and Dogecoin and Shiba Inu Coin also fell by 56% and 64% respectively.
What's more exaggerated is that Coinbase, the largest exchange in the United States, went down, and Binance Exchange also experienced network congestion and suspended withdrawals.
All this is scary now when I think back. There is less than a week left before May 19. Will there be a sharp drop on May 19 this year? I believe that there is a high probability that history will not repeat itself.
First of all, Bitcoin is no longer what it used to be. It has been recognized by more countries and financial institutions. The United States, Hong Kong and other regions have all listed Bitcoin ETFs. This is a legal and convenient way for large institutional funds to configure Bitcoin.
Second, although the market will pull back after the block reward is halved, it is within everyone's expectations, and the pullback will not exceed 40%. There will be a halving bull market in the next 6-9 months, so a large-scale pullback will not occur.
Third, at the macro level, although the inflation data in the United States has not yet reached the ideal value, the number of people receiving unemployment benefits and the number of employed people are moving towards a rate cut. It may not be reduced in June, but the probability is still high in September and December. Once the macro level releases water, cryptocurrency assets mainly based on Bitcoin will benefit.
What we need to do is to control the position well, and don't rush to fill the position.
Like, collect and follow, Mengge will take you to the highway!
