The current market situation with long and short positions is heating up, and many are pointing fingers at the Bank of Japan's recent moves, suggesting that their attempts to stabilize the market have led to synchronized movements in the crypto markets, including $BTC . What are your thoughts on this? ๐ฅ I recently received a 100U excellent review award and have decided to share it with my followers. I'm splitting it into 8 parts, and you can win a 10USDC reward.
1. The crypto market is currently experiencing volatility, and some believe it's due to actions by major players like the German government selling coins, the U.S. government making transfers, and the Federal Reserve hinting at interest rate cuts.
2. The crypto market has evolved into a complex, multi-faceted environment with substantial amounts of speculative capital flowing in. Due to a lack of regulation and the fact that trading happens around the clock globally.
3. On-chain data reveals that over the past month, 358,000 BTC have been moved to permanent holder addresses (as shown in Figure 1). Additionally, global spot ETF inflows reached 52,000 BTC in July, an all-time high.
4. On a smaller scale, in the last 40 hours, 80 wallets have collectively purchased 2,100 $BTC (as seen in Figure 2), further indicating that many are taking advantage of price dips.
5. With hot money flowing into the market, making profits quickly has become a priority, especially through contracts. This has turned the crypto market into a zero-sum game between retail investors and large players. Large investors often manipulate the market in the following ways:
- They buy large amounts of coins at low prices in the spot market, driving up prices to create a bullish outlook, tricking many into believing that the price will continue to rise past key levels, such as $70,000, thereby inducing long positions.
- They capitalize on global events to shape market expectations. For example, the Japanese yen interest rate hike on July 31 caused a brief market rally.
