📍Review of the causes of this round of decline

In the past few days of decline, the total market value has fallen by 20%, and the weekly decline is even close to 30%

This round of decline is actually a bit unsubstantial and a bit inexplicable. The latest report produced by #BinanceResearch tells us one of the main causes of this round of decline

In this round of decline🔻

1. Dog $DOGE is the one with the largest decline among the top ten tokens, while TRON is relatively strong

2. In this round of decline, 819 million capital positions were liquidated (data from various exchanges)

The main reasons for this decline may be summarized as🔻

(1) Employment data is lower than expected

(2) The election candidates do not have favorable industry expectations

(3) The impact of geopolitical struggles triggers risk aversion

(4) The "big whales" of traditional finance may leave

1. The employment data released last Friday was weaker than expected, triggering market concerns about a US recession (unemployment rate rose to 10 in 2021) 1. The expected impact of the US election, because Harris, the current presidential candidate with a relatively high approval rating, did not express clear support for encryption like Trump did. 2. The geopolitical impact of the situation in the Middle East, in plain words, there may be a war, and funds are risk-averse. 3. The abnormal movement of "giant whales" on the chain: It is rumored that Jump may withdraw from the encryption market making business. Although the rumor has not been confirmed, their on-chain wallets (marked by Arkham) show that one of the wallets sold about $300 million. $ETH

Generally speaking, these four factors may have caused this round of decline. Almost none of them are "real hammers", and most of them are emotions.

Views on the future market🔻

(1) Expectations for recession have been released

(2) If the election factor accounts for a large proportion, then if Trump finally takes office, the positive rebound will be greater. If it is Harris, then this part of the expectation has already been released

(3) If the war is really fought, the decline is still inevitable. Every war will fall, and funds are risk-averse

(4) I think Jump will not cut its encryption business. The sell-off may be more due to risk aversion factors #MarketDownturn #加密市场急跌