Today, BTC and ETH have experienced another drop, with over 300 million dollars lost in the past 24 hours. More than 200 million dollars in long positions were liquidated, and 120,000 people were forced to close their positions across the entire network!!!
Today, let’s take a moment to discuss the recent events in the cryptocurrency market. Firstly, why did this significant drop occur? There are three main reasons:
Firstly, there were rumors that the BTC held by the Mt. Gox trustee were being moved and possibly being sold off. This news caused panic among investors, leading to a mass exodus by many whales.
Secondly, governments around the world have been selling off the BTC they confiscated. Although the amount being sold in each instance is not significant, the cumulative effect is substantial. With the market already on edge, even the slightest disturbance is easily reflected in the price charts.
Thirdly, there has been a lot of negative news recently. The rumor of the US Federal Reserve’s interest rate cut being delayed until September has had an impact on the market. Additionally, the selling pressure from small-scale mining farms and miners is also unfavorable for BTC. Currently, with electricity costs calculated at $0.06 per kilowatt-hour, the shutdown price for mining machines such as the M30S++ (shutdown price: $57,513), M33S++ (shutdown price: $57,514), Avalon A1346 (shutdown price: $55,657), and Antminer S19 Pro (shutdown price: $54,813) are fast approaching.
Many cryptocurrency enthusiasts are feeling anxious. So, how can we alleviate the current restlessness in the market? Let’s hear what I have to say!
Firstly, if you have been keeping up with my recent live streams or following my updates, you should have a clear understanding of the current market situation. Regarding BTC and ETH, most retail investors and experienced traders are aware that the market is still in a downtrend. As for altcoins, the situation is even worse. The liquidity is poor, and there is a significant amount of token unlocking and selling pressure. So, what should we do now? I have already provided an answer on June 24th!
Firstly, we need to have a clear strategy. One of the most important aspects of trading is position management. As I have mentioned in my live streams and group chats, you should never go all-in. I recommend a 50-50 allocation. Even if you listen to my advice and don’t go all-in, you can still mitigate losses to some extent. Losing less is considered winning!
Another point to note is that the current market is only suitable for short-term trading. Don’t constantly think about buying at the bottom. We can wait for the market to stabilize before re-entering. It’s okay to earn less. Being trapped in a losing position may take a long time to recover from! Also, don’t try to recover losses by immediately opening leveraged contracts. Opening positions will only expedite the process of getting liquidated. Out of 100 people, if 10 can profit from leveraged contracts, that’s already quite good!
Now that we have discussed the recent negative news, let’s talk about the positive aspects:
1. In a few days, the submission deadline for Ethereum’s ETF application is approaching. If everything goes smoothly, it could be approved next week, leading to a significant influx of funds! If Ethereum stabilizes, it will also benefit altcoins.
2. There are rumors that the US Federal Reserve is struggling and will likely cut interest rates in the third quarter. Better days are ahead!
3. Former US President Donald Trump has shown support for Bitcoin, stating that it could become a strategic reserve asset, enhancing America’s geopolitical power and economic stability. Trump’s voice is still influential in this election cycle.
Regarding the current market situation, I have some practical advice for you all:
1. Don’t play with leveraged contracts.
2. Don’t randomly add to your positions.
3. Focus on news updates and follow my advice!
4. Don’t be impatient and try to recover your losses by opening leveraged contracts. That’s not reliable!
5. Have USDT ready at all times. If Ethereum’s ETF is approved, it could lead to a significant price surge!
Stay strong, all you great crypto consumers!
