Recently, why has the market suddenly plummeted?
There may be several reasons.
First, let’s talk about Musk and the scrutiny surrounding him. This guy Musk, due to the technologies and sensitive information he is involved with in many big companies like SpaceX and Tesla, has come under the watchful eye of the U.S., claiming that it might involve security issues.
Once this was investigated, the market panicked, after all, Musk's business empire is too large, and it is closely related to national security and military technology. Investors got scared, and the stock market began to tremble, leading to misfortune in the crypto space as well.
Now, let's take a look at the global economy, which is quite uncertain. The U.S. is raising interest rates, there are a bunch of debt issues, and concerns about the Chinese economy are also prevalent. Additionally, geopolitical risks like the conflict between Russia and Ukraine and the U.S.-China trade war are factors that can make the stock market shiver. When the economy fluctuates, the stock market goes haywire, so a market decline is not surprising at all.
Tech stocks are also having a tough time, with big companies like Tesla and Apple seeing their stock prices continuously rise, which could lead to a bubble. When investors sense something is off, they rush to sell, and just like that, the market drops again.
Retail investors are also jumping in. Once something spreads on social media, everyone panics and starts selling off massively, causing the decline to worsen and forming a vicious cycle.
Moreover, there are issues within the crypto space itself. After rising for a while, investors want to cash out and start selling stocks, which leads to a market correction. This kind of adjustment doesn’t have much to do with the company's fundamentals, but it can still make the market anxious for a while.
In summary, the reasons for the market crash are these various factors coming together. For us retail investors, facing such a risky market, we need to stay calm, avoid following the crowd blindly, and control risks while making long-term plans.
If you’re an investor, you need to have a long-term perspective and not just focus on short-term fluctuations. When market uncertainty is high, a stable investment approach is the way to go.
As for the next strategic direction, I will guide everyone to target lucrative opportunities in the imitation market, especially those projects with great potential, where a tenfold return is achievable. If you want to make big money in a bull market, like and comment, and I’ll take you along to strategize for the entire bull market.