ETH suffered a lot from the leveraged liquidation within 24 hours, and BTC ranked second. The data showed that more than 200,000 people had their positions liquidated, and the amount of liquidation was more than 800 million US dollars. In fact, as an old investor, I have become accustomed to such fluctuations in the market. There will always be a few times in a bull and bear cycle, and this is not a black swan.
But since you have come to this market, you should be aware of the situations that may occur under extreme market conditions so that you can respond and always be prepared for the worst.
The three most important things Mr. Buffett said:
First, protect the principal
Second, it is better to protect the principal
Third, the most important thing is to protect the principal.
Therefore, I suggest that you get more familiar with the fluctuation rules of this market, and either leave it completely or continue to stay. As long as you can survive, when you have accumulated enough, there is always the possibility of a wave of explosion...
Just don’t borrow money to trade in cryptocurrencies anymore! Don’t borrow money to trade in cryptocurrencies anymore! Don’t borrow money to trade in cryptocurrencies anymore!
The market has been falling all night long. The reason for this situation is that the external markets are all falling. Japanese government bond futures have directly triggered circuit breakers. Therefore, not only is the crypto market going downhill, but the entire financial market is also moving in tandem. Don't blame the market. Ethereum fell 30% in one day, and the copycat market was bleeding.
There is nothing to pay attention to about the reason for this drop. I think the main reason is that they say one thing and do another. They say they want to expand the popularity of the crypto market, but in the end they want to use cryptocurrencies to repay debts, which means they want to use the crypto market to convert into money to fill the hole.
Then about the issue of bottom fishing, if you have already established a position, then decide whether to increase the position based on your own position and funds. If you are already trapped at a high position or have no funds to increase the position, then just ignore it and continue to lie flat.
The tokens held by the copycat: such as eth, sol, wif, pepe, etc. At present, the main ones are those that have rebounded quickly after a deep drop in history.
Bitcoin’s weekly chart shows a bell opening downward, foreshadowing a larger decline.
The market trend is similar to that in 2019, when the market began to recover and entered a bull market six months after a round of interest rate cuts.
The July 2019 rate cut lasted until April 2020, and Bitcoin experienced significant gains ahead of the first rate hike in March 2022.
Within six months after the rate cut, Bitcoin soared on March 12, 2020, and then remained strong until the rate hike in November 2021.
Potential opportunities
According to CME's "Fed Watch" data, the probability of the Federal Reserve cutting interest rates by 25 basis points in September is 78%, and the probability of cutting interest rates by 50 basis points is 22%.
The "Bitcoin Strategic Reserve Act" proposed by US Senators has been submitted to Congress and referred to the Senate Banking Committee for review.
MicroStrategy is seeking to sell $2 billion in Class A shares to buy more Bitcoin, but it has not disclosed a timeline for the stock sale or how much of the proceeds will be used to buy Bitcoin.
There are still doubts as to whether a macroeconomic recession is really underway, because the Fed still has means at its disposal. Buffett's selling of Apple happened in April-June, but it was only reported now. Most people in the market are only aware of it afterward. However, in mid-July, Fed officials largely turned to support interest rate cuts, which in turn shows that there are indeed problems with the U.S. economy. Even if it is dragged down here and the last major wave occurs in the fourth quarter, we should still be wary of the U.S. stock market peaking next year, which will in turn lead to the collapse of the cryptocurrency market.
So where are the opportunities in the cryptocurrency circle? Judging from the current close linkage with the U.S. stock market, if the Federal Reserve introduces policies or other means to appease the market, and the September employment data is not that bad, then there is a high probability that the last main wave of the cryptocurrency will proceed in sync with the U.S. stock market, and it will also be the last chance for copycats. As for how long this main wave will last, it is currently impossible to predict, maybe two months, maybe half a year.
The decline of Bitcoin has obviously exceeded everyone's expectations. The superposition of multiple force majeure buffs has led to a direct waterfall-like decline in the market. No matter from which angle you look at it, the short-term trend of the market has been completely destroyed. Now we have to re-verify the strong support near 53,000. Of course, any support is vulnerable under sudden negative news.
Short-term trend destruction will not affect future trends, but such a deep decline will require a long period of adjustment and repair.
The only hope today is the July ISM non-manufacturing PMI released by the United States at 22:00 Beijing time. Because recession is the most concerned and sensitive topic for investors now, economists expect it to rise from 48.8 to above the 51 boom-bust ridge. If the data exceeds or meets market expectations, the sell-off in the global market is expected to be temporarily suspended.
ETH suffered a lot from the leveraged liquidation within 24 hours, and BTC ranked second. The data showed that more than 200,000 people had their positions liquidated, and the amount of liquidation was more than 800 million US dollars. In fact, as an old investor, I have become accustomed to such fluctuations in the market. There will always be a few times in a bull and bear cycle, and this is not a black swan.
But since you have come to this market, you should be aware of the situations that may occur under extreme market conditions so that you can respond and always be prepared for the worst.
The three most important things Mr. Buffett said:
First, protect the principal
Second, it is better to protect the principal
Third, the most important thing is to protect the principal.
Therefore, I suggest that you get more familiar with the fluctuation rules of this market, and either leave it completely or continue to stay. As long as you can survive, when you have accumulated enough, there is always the possibility of a wave of explosion...
Just don’t borrow money to trade in cryptocurrencies anymore! Don’t borrow money to trade in cryptocurrencies anymore! Don’t borrow money to trade in cryptocurrencies anymore!
The market has been falling all night long. The reason for this situation is that the external markets are all falling. Japanese government bond futures have directly triggered circuit breakers. Therefore, not only is the crypto market going downhill, but the entire financial market is also moving in tandem. Don't blame the market. Ethereum fell 30% in one day, and the copycat market was bleeding.
There is nothing to pay attention to about the reason for this drop. I think the main reason is that they say one thing and do another. They say they want to expand the popularity of the crypto market, but in the end they want to use cryptocurrencies to repay debts, which means they want to use the crypto market to convert into money to fill the hole.
Then about the issue of bottom fishing, if you have already established a position, then decide whether to increase the position based on your own position and funds. If you are already trapped at a high position or have no funds to increase the position, then just ignore it and continue to lie flat.
The tokens held by the copycat: such as eth, sol, wif, pepe, etc. At present, the main ones are those that have rebounded quickly after a deep drop in history.
Bitcoin’s weekly chart shows a bell opening downward, foreshadowing a larger decline.
The market trend is similar to that in 2019, when the market began to recover and entered a bull market six months after a round of interest rate cuts.
The July 2019 rate cut lasted until April 2020, and Bitcoin experienced significant gains ahead of the first rate hike in March 2022.
Within six months after the rate cut, Bitcoin soared on March 12, 2020, and then remained strong until the rate hike in November 2021.
Potential opportunities
According to CME's "Fed Watch" data, the probability of the Federal Reserve cutting interest rates by 25 basis points in September is 78%, and the probability of cutting interest rates by 50 basis points is 22%.
The "Bitcoin Strategic Reserve Act" proposed by US Senators has been submitted to Congress and referred to the Senate Banking Committee for review.
MicroStrategy is seeking to sell $2 billion in Class A shares to buy more Bitcoin, but it has not disclosed a timeline for the stock sale or how much of the proceeds will be used to buy Bitcoin.
There are still doubts as to whether a macroeconomic recession is really underway, because the Fed still has means at its disposal. Buffett's selling of Apple happened in April-June, but it was only reported now. Most people in the market are only aware of it afterward. However, in mid-July, Fed officials largely turned to support interest rate cuts, which in turn shows that there are indeed problems with the U.S. economy. Even if it is dragged down here and the last major wave occurs in the fourth quarter, we should still be wary of the U.S. stock market peaking next year, which will in turn lead to the collapse of the cryptocurrency market.
So where are the opportunities in the cryptocurrency circle? Judging from the current close linkage with the U.S. stock market, if the Federal Reserve introduces policies or other means to appease the market, and the September employment data is not that bad, then there is a high probability that the last main wave of the cryptocurrency will proceed in sync with the U.S. stock market, and it will also be the last chance for copycats. As for how long this main wave will last, it is currently impossible to predict, maybe two months, maybe half a year.
The decline of Bitcoin has obviously exceeded everyone's expectations. The superposition of multiple force majeure buffs has led to a direct waterfall-like decline in the market. No matter from which angle you look at it, the short-term trend of the market has been completely destroyed. Now we have to re-verify the strong support near 53,000. Of course, any support is vulnerable under sudden negative news.
Short-term trend destruction will not affect future trends, but such a deep decline will require a long period of adjustment and repair.
The only hope today is the July ISM non-manufacturing PMI released by the United States at 22:00 Beijing time. Because recession is the most concerned and sensitive topic for investors now, economists expect it to rise from 48.8 to above the 51 boom-bust ridge. If the data exceeds or meets market expectations, the sell-off in the global market is expected to be temporarily suspended.
