Bitcoin has recently "stirred up" a storm, with 420,000 retail investors facing liquidation. What's going on here? Some say this is the U.S. trying to use Bitcoin to counterbalance China, while others say it's because "Old Powell" suddenly turned contrarian.
This wave of Bitcoin's crash is like a "perfect storm" from the heavens, with several unfavorable factors coming together, making it quite lively!
First, let's talk about the broader environment. Currently, the global economy is not doing well, inflation is skyrocketing like it's determined to climb higher, and the Federal Reserve is continuously raising interest rates. All these factors combined hit Bitcoin like a heavy punch, leaving it dazed. The latest data from The Wall Street Journal shows that the dollar index is stubbornly hovering around 108, making life even harder for Bitcoin.
Now looking at the policy side, it has been quite unstable. According to Reuters, Trump was quite favorable towards cryptocurrencies during his presidency, but Biden has become more cautious after taking office. The attitude of various countries' regulatory bodies towards cryptocurrencies is a real "love-hate" relationship. Bloomberg statistics show that over 20 countries worldwide have implemented varying degrees of regulatory measures on cryptocurrencies. Isn't that like putting a "tightening spell" on Bitcoin?
The technical indicators have worsened the situation. According to analysis from the Financial Times, various technical indicators have turned red: MACD death cross, RSI oversold, and the candlestick chart has staged a dramatic "waterfall dive." This is similar to the "5-day line" and "10-day line" in the stock market.
Market sentiment has exploded. Binance data shows that in just a few days, 420,000 people have faced liquidation. What's the difference from an outright "scam"? The previous rapid rise attracted many "retail investors" to enter, and once the bubble burst, they all turned into "cannon fodder."
Speaking of the China-U.S. rivalry, The Economist analyzes that Bitcoin is like a "pawn" in this contest. However, we cannot oversimplify the situation; it's like playing Mahjong, you can't win the whole game by only focusing on one tile.
Powell's "contrarian" stance is also quite deliberate. According to reports from Wall Street, he clearly stated that the Federal Reserve will not hold Bitcoin, which is a very steady move. It both maintains the dollar's "dominance" and prevents Bitcoin from causing any trouble.
For ordinary investors, this market is like a "roller coaster"; a moment's inattention can throw you off. Investment should prioritize "stability"; don't expect to get rich overnight. Diversification is the key, just like the old saying goes: "Don't put all your eggs in one basket."
In the long run, Bitcoin still has considerable potential. But one must constantly remind oneself: investment carries risks, enter the market with caution, operate steadily, and withdraw if it's not going well.
Additionally, as the year comes to a close, everyone should be cautious about their finances and not regret a moment of impulsivity for a lifetime; invest wisely. #比特币战略储备 #加密市场反弹