Yesterday, the cryptocurrency market experienced a downturn for the following reasons:
✔️ 1. Hong Kong is on the verge of passing legislation for Bitcoin and Ethereum ETFs. Traditional financial institutions aim to buy Bitcoin and Ethereum from the market at lower prices before this happens. Consequently, some institutions collaborated to short the market, intending to pressure retail investors into selling their cryptocurrencies at a lower price. This situation resembles what occurred a few months ago in the United States before the legislation for Bitcoin and Ethereum ETFs, when the cryptocurrency market also experienced a downturn. However, shortly after, Bitcoin prices began to rise continuously until reaching a historic high.
✔️ 2. Bitcoin is approaching its fourth halving event, which historically leads to a significant price increase. Traditional financial institutions seek to purchase Bitcoin from the market at lower prices before the halving occurs. Therefore, some institutions collaborated to short the market, aiming to pressure retail investors into selling their cryptocurrencies at a lower price.It's advisable for everyone to stay calm and wait for a comprehensive market upturn by the end of the month. Don't be deceived by top-tier traditional financial institutions; they are trying to snatch cheap chips from our hands.