The worst performing market in the world recently is the crypto market. No matter how everyone performs, it has only one choice: to fall.
In the past three days, Bitcoin has fallen by nearly 10%, altcoins have fallen across the board, and the crypto market has suffered a heavy blow. What is the reason behind the sharp drop?
The main reasons are as follows:
First: As the local war in the Middle East intensified, the US government also informed the staff and families of the US Embassy in Israel to evacuate on their own. Unrest in local areas will cause a rapid decline in financial markets.
Second: Powell's speech lowered the interest rate cut from 125 basis points to 100 basis points. Although the Fed will continue to cut interest rates to support economic growth, it is not in a hurry to cut interest rates significantly. He emphasized that the economic situation is sound and the Fed's goal is to maintain stability without rushing to cut interest rates further.
Third: Affected by the Japanese stock market, the Japanese stock market plummeted and triggered circuit breakers in the past few days. This may be because the previously rumored crisis has not been resolved, or it may be due to the new prime minister taking office and raising interest rates. When Bitcoin plummeted in early August, the Japanese stock market also plummeted and triggered circuit breakers.
Fourth: US JOLT job vacancies increased to 8.04 million, higher than the expected 7.65 million.
Fifth: The US ISM manufacturing PMI was 47.2%, the largest drop since May 2023, lower than the expected 47.5%, and shrinking for the sixth consecutive month.
What to do?
The market will not continue to fall. Friends who are stuck with spot goods, don’t be anxious, keep calm and wait for the market to get better.
From a broader perspective, as long as the war does not escalate, the cryptocurrency market should return to its previous upward momentum.
If the war does not escalate, the market is expected to rebound soon. At this time, everyone can adjust their positions, pay more attention to what the official says, and know the latest situation. Although the war may make the market a little chaotic in the short term, in the long run, the bull market momentum should not change. Generally speaking, as long as the war does not spread and the market recovers, the bulls will still have the final say.
Most of the altcoins are similar. If Bitcoin falls by 10%, the altcoins will fall by 30%. Only a very small number of them can follow independent trends, such as SUI. Its recent performance is really eye-catching. The unlocking of large amounts of tokens has not been able to pull it down, and the trend is getting stronger and stronger. In the long run, it will break new highs soon. You can continue to pay attention to it.
Meme may be the one that fell the hardest, and it may also rebound the fastest. As I said before, every pullback of meme is an opportunity for us to get on board. As long as you dare, meme will definitely bring you surprises in this bull market. It is a must for everyone to have one or two. FLOKI, PEPE, BOME, and WIF are preferred, and the shit combination depends on the situation.
There is nothing much to say about BNB. When viewed as a stablecoin, everywhere is the cost point.
SOL is also following the trend of the market. There hasn't been any good news for a long time, so just buy the bottom on the left side at a low level.
For other sectors, AI, Inscriptions, and then Chain Games are the second choices. As I said before, look at the leaders. It is recommended to wait and see at present. The correction has not stabilized yet. For short-term trading, enter the first position. After 10% and 15%, reduce your position depending on the situation.
Recent events that require attention:
1. October 4, US non-farm data and unemployment rate.
2. On October 7, FTX voted on repayment of $16 billion.
3. October 10, US CPI data.
4. October 22, FTX repayment hearing.
