Bitcoin Drops Below $65,000, Signal of Buying???
At 8:30 PM last night, the US released the May retail data, often referred to as the "scary data." The good news is that there was almost no growth, indicating that consumers are currently facing greater financial pressure and suggesting economic downturn expectations. This means inflation control efforts have had some effect, increasing the likelihood of a rate cut.
However, Federal Reserve officials, known for their "expectation management," stated that while progress has been made in fighting inflation, future rate cuts must be based on economic data, requiring more patience.
This led to Bitcoin's rather uneventful performance last night, hovering around $65,000. Bitcoin's performance has been weak throughout the week. The main reasons for the recent lack of upward momentum are:
1. ETF Fund Inflows Slowing: Although Bitcoin ETFs have seen net inflows overall, the inflow rate has slowed significantly in recent weeks. Besides GBTC, funds like FBTC and ARKB have also occasionally seen outflows.
2. Lack of New Narratives: The market is missing new positive narratives. Apart from Ethereum’s ETF expectations, there are no new stories driving interest.
What Should You Do Next?
1. Exercise Caution: PMI data will be released on Friday, and upcoming unemployment and CPI data on July 11 should be closely watched. It's important to be cautious.
2. Remain Long-Term Bullish: The market won't continuously decline. I maintain my view that the bull market will last from this year into mid-next year. Don't sell Bitcoin and Ethereum at a loss. For quality altcoins, use dollar-cost averaging to lower costs.
Finally, keep a positive mindset and enhance your earning potential outside the market. Thank you for your support. Original content is not easy to produce, so please like and follow for more updates.
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