On Monday, the price of BTC continued its downward trend, and on Tuesday morning it even touched a low of 76.6k, which has already fallen below the support level formed during the brief spike on February 28. In the past 24 hours, BTC has dropped about 5%, reaching a new low in nearly four months. This wave of decline is closely related to the economic policies adopted after Trump took office; he used artificial means to create an economic recession to force the Federal Reserve to cut interest rates, which is quite aggressive.
Although the market is currently in a second bottom-testing stage and even set a new low in the early morning, investors need not panic too much. At this time, for bold investors, it is an opportunity to consider buying the dip, but be sure to set stop-loss levels to control risk. Why can we bet on a rebound now? Looking back, some institutions bought the dip at 78k and made considerable profits. And now, the market offers prices lower than that, giving investors a chance to enter at a more favorable 'discount price'.
Therefore, in the face of market volatility, investors should remain calm and avoid falling into FOMO (fear of missing out). Reasonable risk control and strategy execution are the keys to long-term stable investment.
First, let's talk about why Bitcoin is falling so severely?
Trump's 'free ride' strategy: The Trump administration did not actually invest funds to purchase BTC, but rather used approximately 200,000 BTC seized as a national strategic reserve. Although this action increased the exposure of BTC, it did not bring substantial new funds to the market and may instead trigger sell-offs due to unmet market expectations.
The phenomenon of celebrities issuing tokens is rampant: Since last year, many celebrities and politicians have entered the cryptocurrency space, issuing their own tokens. This trend has caused chaos in the crypto circle, with hackers, politicians, institutions, and market makers jointly issuing tokens, leading to a significant withdrawal of market liquidity. Moreover, these token projects often lack real value support, ultimately resulting in the harvesting of retail investors and further exacerbating market panic.
The impact of the global tariff trade war: The global tariff trade war initiated by the Trump administration, especially trade disputes with countries like China and Mexico, has caused a short-term blow to the global economy. The significant reduction in government spending has further exacerbated market concerns. Against this backdrop, capital outflow in the crypto circle has intensified, institutions have taken the opportunity to harvest profits, while retail investors feel confused between bull and bear transitions. Trump's 'collapse first, save later' strategy has further escalated market panic, leaving even his own people unable to escape.
US inflation and Federal Reserve policy adjustments: The worsening inflation issue in the US has greatly reduced the probability of the Federal Reserve cutting interest rates. This policy shift has an adverse impact on the cryptocurrency market, as a low-interest-rate environment is typically seen as favorable for driving up asset prices. The suspension of the probability of Fed rate cuts further undermined investor confidence, putting pressure on the prices of cryptocurrencies like Bitcoin.
The Federal Reserve will not cut interest rates next week, but if the trade war triggers an economic downturn, it may begin rapid rate cuts in June. The futures market is betting on a 25 basis point cut in June, July, and October due to concerns over economic recession sparked by Trump's tariff rhetoric, leading to declines in US stock and bond yields. The Federal Reserve may face pressure from Trump to cut rates.
Last night, Mentougou transferred out 11,834 BTC, worth about $905 million, estimated to be a sell-off. During the continuous decline, everyone panicked and started selling.
The continuous decline of ETH may trigger a chain liquidation, and at this time, don't pick on people's nerves! Concerns about a US economic recession are also intensifying, and the pessimistic sentiment of falling US stocks is spreading, reaching a dark moment.
Many fans are asking if there will be a rebound, how to buy the dip?
Are you waiting for Bitcoin to fall to the ground shaking, to a scene of despair, to a point where large holders are continuously liquidated? In fact, retail investors have already fallen... To put it bluntly, when it falls to the target price range of this chart, $73,000 to $78,000, you must gradually buy the dip when multiple supports appear. (It is not recommended to buy the dip on altcoins, as altcoins will fall even more terribly!)
Bitcoin may rebound during the day, but at night the US stock market should be cautious of another crash. At night, the US establishes a bottom, and Asia buys the dip. If the US stock market experiences a circuit breaker again tonight, it could directly drop to 312, and Bitcoin may build a bottom near $74,000, pulling back 36% from its historical high of $110,000, which is common in a bull market.
Subsequently, the US stock market may plummet, traditional financial giants may go bankrupt. Then, the Federal Reserve and central banks of various countries will inject liquidity to rescue the market, and this will be the time to go all in. $21 billion in dip-buying funds is on the way. MicroStrategy is even more anxious than you, risk-averse investors can wait for the central bank to inject liquidity before increasing positions, although you may not buy at the lowest point, but you can avoid long-term consolidation and floating losses.
In addition, those who are sensitive enough should also be able to sense that everything expressed now is to ensure the Federal Reserve cuts interest rates.
So, what can forcing the Federal Reserve to cut interest rates bring to the US?
The main thing is to save $400 billion in interest for the US in a year, then lay off employees and tighten spending, engage in tariff extortion, overdraw the credit of the dollar, etc., just to ease the pressure of US debt interest.
And then, after the US stock market rebounds, it will be said to be his achievements, after all, last night the understanding king was still posting on Truth Social: 'Don't panic, the US stock market will come back, I have a big plan!'
Leave '888' in the comments and I'll help you seize this wave of market!
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