🚨 The daily evaporation of US stocks far exceeds the total market value of cryptocurrencies. How far is the spring of the cryptocurrency market?
📉 In the past two weeks, the cryptocurrency market has experienced a big wash, and the price of Bitcoin once fell to $59,000. Here, my advice is that there is nothing wrong with swing trading itself, but I strongly recommend not to use leverage. Because if you are liquidated, the assets lost due to leverage can never be recovered. Please be cautious and don't take the risk of leveraged trading with money you can't afford to lose.
💥 In the past 24 hours, the market witnessed $1.068 billion in contract liquidations, including 907 million long orders and 161 million short orders. Looking back at the liquidation data in the past six months, the number of long positions liquidated far exceeds that of short positions, which reflects that most people in the cryptocurrency market this year are relatively greedy and prefer to go long. In the Bitcoin bear market, the situation is just the opposite.
📊 From the contract liquidation chart, we can see that in the past six months, the number of short-selling funds that have been liquidated is relatively small, and most of the liquidations are due to excessive use of leverage to go long. But this round of sharp correction seems to be causing the market to make a deeper correction and adjustment. Because only when these greedy long traders are washed out by the market, the market is likely to start the next wave of sustainable and sharp rise.
🌐 In addition, the performance of the US stock market last Friday was also shocking, with a single-day market value evaporation of up to 2.9 trillion US dollars. However, the current total market value of the cryptocurrency market is only 24,000 US dollars, which means that the market value evaporated by the US stock market last Friday is 1.2 times higher than the sum of the current market values of all cryptocurrencies. This reflects from the side that although the market value of cryptocurrencies is still relatively small, the cryptocurrency market still has huge growth potential!
🗣️ Some people believe that despite the current market volatility, this also provides more room for growth for the official bull market. Therefore, there is reason to believe that in the next decade, the growth prospects of the cryptocurrency market value will be unlimited!
💬 Do you think it is the bottom of the cryptocurrency market now? In such a market environment, what investment strategy will you adopt? Leave your opinions in the comments section!
