BTC falls below $70,000; this time, I’m more focused on the reasons behind it
BTC fell below $70,000 yesterday, briefly reaching around $67,600 during the day.
There’s something worth noting about this downturn.
On the one hand, inflationary pressures in the U.S. remain, and Fed officials have begun discussing further rate hikes more explicitly.
On the other hand, the price drop triggered liquidations of a large number of leveraged long positions, amplifying the decline.
I think it’s important to distinguish between two things here.
A worsening macro environment affects investors’ willingness to allocate funds to risk assets.
Meanwhile, leveraged liquidations can make short-term price declines much sharper than changes in fundamentals would warrant.
So we shouldn’t assume that a steep drop means an opportunity has arrived, nor should we take a wave of concentrated liquidations as proof that the industry’s long-term fundamentals have changed.
What I’m paying closer attention to now is whether funds can stabilize again once liquidation pressure has eased.
A short-term decline doesn’t mean long-term value has changed, but there’s also no need to rush to call a bottom before the macro funding environment improves.
#bitcoin #crypto #宏观经济
BTC fell below $70,000 yesterday, briefly reaching around $67,600 during the day.
There’s something worth noting about this downturn.
On the one hand, inflationary pressures in the U.S. remain, and Fed officials have begun discussing further rate hikes more explicitly.
On the other hand, the price drop triggered liquidations of a large number of leveraged long positions, amplifying the decline.
I think it’s important to distinguish between two things here.
A worsening macro environment affects investors’ willingness to allocate funds to risk assets.
Meanwhile, leveraged liquidations can make short-term price declines much sharper than changes in fundamentals would warrant.
So we shouldn’t assume that a steep drop means an opportunity has arrived, nor should we take a wave of concentrated liquidations as proof that the industry’s long-term fundamentals have changed.
What I’m paying closer attention to now is whether funds can stabilize again once liquidation pressure has eased.
A short-term decline doesn’t mean long-term value has changed, but there’s also no need to rush to call a bottom before the macro funding environment improves.
#bitcoin #crypto #宏观经济