Coin World Network reported:
As the rate cut cycle is about to arrive, the Bitcoin ETF is approved, the halving cycle, and the Ethereum ETF approval is imminent, cryptocurrencies are facing a significant pullback.
Since June, Bitcoin has pulled back from a high of 72,000 to around 63,000 on July 1st.
Starting on July 2nd, it began to fall sharply, continually breaking through supports at 60,000, 58,000, and even today falling below 53,500, nearly a 10,000-point drop from the beginning of the month. Altcoins have dropped by over 30-50% in three days.
The intensity of the past two days has surpassed that of May 19th, almost catching up with March 12th.
In the past 24 hours, the entire network liquidated 686 million USD, with more than 27 people liquidated.
Ethereum’s liquidation has been even more brutal. Due to the large amount of borrowing and leverage on Ethereum, as it fell below 3,000, a large number of large holders began to be liquidated.
With the imminent addition of the ETF spot benefit, almost no one could have expected Ethereum to fall to the 2,000s.
This drop has completely erased the gains from the bullish news of Ethereum. The news of the Ethereum ETF now seems to have brought no capital inflow, instead becoming a tool for short-selling capital to harvest the market.
This drop is ostensibly due to various countries, especially the German government, and the potential sell-off by Mt. Gox, as well as the so-called “rate hike” argument in the market.
However, the more direct reason is the spot wash trading and clearing of the large amount of leverage accumulated recently due to the Ethereum bullish news and rate cut expectations.
Since Wall Street capital began entering the crypto market, the market trend has become strange, always manipulating the market with unconventional trends.
Given the current situation, it has completely exceeded my predictions, even with some risk control.
In the short term, the repayment work of Mt. Gox is already underway, mainly in BCH and BTC. Tonight there is significant non-farm payroll data. The impact of the previous data was not significant, but tonight’s data might be more important because the market has fallen so much that it may need data to boost confidence.
Final words: In the garbage time of a downtrend, any words are powerless, but opportunities always appear in panic. Believe in the cycle theory.