💥 $ETH fell below $3,500! $BTC fell below $98,000! U.S. stocks also plummeted simultaneously. Is this downward trend a temporary correction or a precursor to a bigger storm?
Ethereum (#ETH ) and Bitcoin (#BTC ) both fell sharply, with ETH in particular losing 5.70% in a day and currently quoting $3,477, while BTC fell below $98,000, down 3.85% in 24 hours. This decline is not limited to the cryptocurrency market, but U.S. stocks have not been spared. It is obvious that global market risk aversion is heating up.
💡 Possible reasons for this drop:
1️⃣ Macroeconomic pressure: As the Federal Reserve’s expectations for interest rate hikes heat up, market concerns about rising capital costs are simmering. Risk assets bear the brunt of the crisis, leading to a massive withdrawal of funds.
2️⃣ Institutional profit-taking: The recent price performance of BTC and ETH has been impressive, and a large number of institutional investors have chosen to cash out at high levels, causing selling pressure in the short term.
3️⃣ Fluctuating market sentiment: The simultaneous decline of U.S. stocks has also led to pessimism in the crypto market, and many investors have chosen to stop losses and wait and see.
🔍 My observations:
Although market sentiment is gloomy in the short term, this pullback may be healthy in the long term - the market needs to release excessive upward pressure and regain momentum. At the same time, a large amount of institutional funds have not completely withdrawn, but are looking for a better entry point next time.
👉 Suggested strategies:
Layout in batches: For those who are optimistic about ETH and BTC in the long term, this is a good opportunity to slowly accumulate funds, but be sure to control risks and do not buy them all at once. Pay attention to the market trend: Pay close attention to the Federal Reserve policy and the performance of U.S. stocks, which will directly affect the direction of the short-term crypto market.
Set a good stop loss point: For investors with short-term operations, set a clear stop loss point to avoid greater losses.
🌟 Final reminder: Every time the market falls, it is actually the beginning of greater opportunities in the future. What do you think is the next step for BTC and ETH? Let’s talk about your opinions!
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