PANews reported on August 6 that Markus Thielen, founder of cryptocurrency research company 10x Research, wrote an analysis that the key considerations that Bitcoin traders should pay attention to at present are as follows:
1. While many attribute the Bitcoin sell-off to the unwinding of the Japanese carry trade, the reality is more complicated. Bitcoin has been vulnerable since mid-March, trading range-bound despite a 15% gain in the Nasdaq and a 10% depreciation in the yen. The carry trade relies on continued high U.S. interest rates, which are unlikely to last.
2. Over the past 24 hours, the crypto market's trading volume reached $244 billion, the highest since March 6. Bitcoin experienced significant intraday liquidations after hitting a new high that day. Although we were very bullish on the market in February and early March, we became cautious after the sharp drop. It turned out to be the right decision.
3. Financial markets are like jigsaw puzzles that need to be reassembled periodically, with new drivers of asset prices emerging. This is one of those times. Unlike the sharp declines in April and June, which were mitigated by increased leverage, a reversal this time may not happen.
