CoinWorld reports:
As the interest rate cut cycle approaches, Bitcoin ETF is approved, and on the eve of the Ethereum ETF approval, the cryptocurrency market experiences a significant pullback.
Since June, Bitcoin has retraced from its high of 72,000 to around 63,000 on July 1st.
Starting from the 2nd of July, the decline intensified, breaking through support levels at 60,000, 58,000, and dropping even below 53,500 today, marking a nearly 10,000 point decrease from the beginning of the month. Altcoins have also seen declines of over 30-50% over the past three days.
The severity of these past two days has exceeded the levels seen during May 19th and approached those of March 12th.
In the last 24 hours alone, liquidations across the entire network amounted to $686 million, with over 27,000 accounts being liquidated.
The liquidations in Ethereum have been even more severe. Due to the higher leverage and borrowing among large holders on the Ethereum platform, a significant number of them have been liquidated after Ethereum dropped below 3,000.
Despite the upcoming bullish sentiment from ETFs, few anticipated Ethereum’s drop to below 2,000.
This downturn has effectively wiped out the gains made after the positive Ethereum news and anticipation of interest rate cuts. The Ethereum ETF news, in hindsight, seems to have not attracted any new capital and instead became a tool for capitalizing on market short positions.
The primary causes behind this decline are ostensibly related to potential sell-offs from various countries, particularly influenced by the German government and speculations about interest rate hikes in the market.
The more direct reasons include spot market cleansing and the clearing of substantial leverage accumulated recently due to positive Ethereum news and expectations of interest rate cuts.
Since Wall Street capital began entering the cryptocurrency market, market trends have become more unpredictable, often manipulating the market with unconventional movements.
Given the current situation, it has already exceeded my predictions, despite adequate risk management.
Currently, efforts are underway to resolve the sell-offs, primarily focusing on BCH and BTC. Tonight’s significant non-farm payroll data might be crucial, as previous releases had minimal impact. Given the market’s current state, there is a greater need for data to restore confidence.
In conclusion: During times of decline and uncertainty, words are often powerless, but opportunities inevitably arise amidst panic. Stay committed to cycle theory.