The current market trend has indeed put pressure on contract traders. The rapid decline has led to a series of situations such as being cut, resisting orders, and even liquidation. In this kind of continuously falling market, more and more loopholes are exposed, which may eventually lead investors into a situation where they cannot turn back.
The main reasons for this round of decline can be summarized as follows:
1. Impact of the Mentougou incident compensation: With the payment of the Mentougou incident, the market may face the pressure of cashing out by some investors. Although not all beneficiaries of the compensation will sell immediately, some cashing out in the short term is inevitable.
2. Government selling of Bitcoin: The German and other governments may sell Bitcoin for specific strategic considerations, not a comprehensive selling signal. Investors should look at it rationally and avoid blind panic. In the long run, Bitcoin's status as "digital gold" is recognized, and the country may increase the proportion of Bitcoin held in future strategies to lay out the virtual economy.
3. Competition between capital and miners: With the continuous increase in the cost of Bitcoin mining, the average cost of mining is currently close to US$55,000. The goal of capital is to absorb chips more effectively and create more space and chips for itself. Capital does not want the game to stop going on, but hopes to gain benefits in the market. Therefore, the possibility of directly smashing the price of Bitcoin to $30,000 in the short term is low.
Although the outside world's concerns about a sharp drop seem great on the surface, it actually depends on whether the market can stabilize. In addition, we should not only focus on selling, but also on buying. Bitcoin ETF has been building positions on dips and absorbing chips. The strategy of Ethereum ETF will also usher in results between July 8 and 15. These are important factors in the market situation.
Investment is a manifestation of a comprehensive result. Too much focus on the local may lead to a narrow field of vision. Therefore, for investors who are currently uncertain about the market, it is best to find the right strategy and timing.
