Why do I suggest that you don't play contracts?
Every time a huge positive is released, there will be a sharp drop. This sharp drop must be made by people
Why? For example, the whole world is cutting interest rates. As we all know, liquidity begins to be released, and the financial market and digital asset market will soar. What are many people who do leverage doing at this time? Everyone is predicting that this thing will increase in price in the future. People who do leverage will definitely go long, buy more, right? A lot of people buy more, and the exchange will lose money if it rises a little bit. If 90% of people go long, it will definitely plummet. Why? Do you want to bankrupt the exchange? All exchanges will definitely smash it. It will not harvest people who buy spot. If people hold spot Bitcoin and do not trade, you can't harvest it, right?
This kind of surge and plunge, all the harvesters are people who do contracts, because I give you a 10x leverage for this contract, I want to make 10 times, not lose 10 times to you, right?
This kind of surge and plunge is considered to be manufactured, and has nothing to do with the market.
When the Fed raises interest rates, Bitcoin will skyrocket. Everyone knows that this digital asset or exchange or other financial market will definitely fall, so everyone will definitely go short. If 90% of people short, the exchange will go bankrupt. If the exchange wants to avoid this situation, it will definitely pull it up and beat the short sellers.
You can look at the historical Fed rate hikes. When the Fed raises interest rates, it actually faces a sharp drop in assets, but every time the Fed raises interest rates, it will skyrocket in the early stage, and the surge may end in a few hours. Why? It is because if it doesn't do this, it will bankrupt the exchange. The exchange can only do this, and it is forced to do it.
90% of people short, it must pull up, 90 people go long, it must hit it down