#BTC Bitcoin plunge triggers panic, is it time to buy the dip? The volatility in 2 months was the lowest, and this time there was a big downward movement. Everyone started to panic. Will the pie fall further? Although short-term spot positions will feel damaged, the most important thing to do is to hoard coins! The lower you go, the more greedy you become. If you withstand short-term fluctuations, you can gain a lot from holding the currency in the next bull market. It’s time to be greedy! Don’t you slowly lay out the bottom position now? When to wait?
Why did it fall so sharply? First, some people believe that the plunge was caused by the shrinking spot trading market and the increase in the derivatives market. The decrease in spot trading volume has led to a decrease in market supply, while the increase in the derivatives market has brought more speculators and leveraged transactions. This change in market structure may lead to increased price volatility, thus triggering the plunge in Bitcoin.
Secondly, the rise in global interest rates is also considered to be one of the factors leading to the decline of Bitcoin. In particular, rising interest rates on U.S. Treasury bonds have made risky assets in traditional markets more attractive, while investors have moved funds away from cryptocurrencies such as Bitcoin, triggering a sell-off in Bitcoin. In addition, institutional investors' lack of optimism about the current market is also one of the reasons for Bitcoin's plunge. Although some people believe that now is a good time to buy lows, institutional investors tend to pay more attention to long-term trends and stability, and they may choose to wait and see or wait for a better entry opportunity.
The currency circle is now in a deep bear state. In recent days, the cumulative decline of altcoins has basically exceeded 40%, and the trading volume has also decreased significantly. In a bear market, this situation is actually very normal. The current cryptocurrency market is not attractive for outside funds. The previous rebound was entirely driven by the BlackRock spot ETF. However, at present, it is difficult for spot ETFs to trigger another rally in the short term.
This also means that the market may not appear until the end of this year or the beginning of next year, so this expectation cannot be realized in the short term. There is no reason for external capital to remain in the cryptocurrency market. In contrast, the U.S. stock market is doing well as it is barely able to attract some money from U.S. Treasuries thanks to the super concept of artificial intelligence. However, the cryptocurrency market does not have a similar attraction, and the result is that funds are absorbed from both sides.
