Coin world news:
As the interest rate cut cycle approaches, Bitcoin ETF is approved, and on the eve of the halving cycle, Ethereum ETF is pending approval, the cryptocurrency market sees a significant pullback.
Starting from June, Bitcoin retraced from its peak of 72,000 to around 63,000 by July 1st.
From July 2nd onwards, a sharp decline began, continuously breaking through support levels at 60,000, 58,000, and even dropping below 53,500 today, marking a decrease of nearly 10,000 points since the beginning of the month. The altcoins saw declines of over 30-50% for three consecutive days.
The intensity of the past couple of days surpassed that of May 19th and almost approached March 12th.
Over the last 24 hours, a total of 686 million USD has been liquidated across the network, with over 27 public figures facing liquidation.
The liquidation in Ethereum was even more severe, as there were many large holders engaging in borrowing and leveraging on the Ethereum network. Following Ethereum’s drop below 3,000, a significant number of large holders faced liquidation.
With the looming optimism of ETF spot trading, it is hard to fathom that Ethereum could plummet to the 2,000 levels.
This drop effectively negated the gains made after positive news around Ethereum, with the Ethereum ETF news not attracting any new inflow but rather being utilized as a tool for capitalizing on short positions.
The primary reasons behind this decline, on the surface, were potential sell-offs from various countries, especially the German government, and the impact of the so-called “interest rate” debate in the market.
However, the more direct reasons were spot market adjustments and the clearing of leverages that had accumulated due to recent positive news on Ethereum and expectations of a rate cut.
Since Wall Street capital started entering the cryptocurrency market, its trends have become unpredictable, often manipulating the market in unconventional ways.
The current situation has already surpassed my predictions, despite risk management measures in place.
In the short term, efforts for the account settlement in the cryptocurrency market are ongoing, primarily focused on BCH and BTC. With significant non-farm data expected tonight, whereas the previous data releases had minimal impact, it is anticipated that tonight’s data may hold more weight, as the overall market has experienced such a decline and may require data to boost confidence.
In conclusion, during times of market downturn, words seem powerless, but opportunities always emerge amidst panic. Stay firm in the cycle theory.