[The real reason for Bitcoin’s high dive! In-depth interpretation]
Have you been thrown off the bus?
Introduction: New Strategy News, approximately 248,000 people have been liquidated in the last 24 hours, with a total liquidation amount of approximately US$812 million (equivalent to RMB 5.84 billion). what is the reason?
The new strategy analysis is as follows:
🔥First, the trigger: the Bitcoin bubble argument went viral. Michael Hartnett, chief investment strategist at Bank of America, said that amid the record surge of the so-called "Rose Seven" stocks in the technology industry and the all-time high of cryptocurrencies, the market is showing the characteristics of a bubble.
🔥Second, indirect reason: There is a large accumulation of profit selling pressure. After Bitcoin hit a record high, there should have been no resistance to the upward trend. However, since the Spring Festival, the upward trend has taken too long, and there has been a heavy backlog of profits. Faced with the dilemma of a weak upward trend, the selling pressure has begun to transform into short-selling momentum. To put it bluntly, it is a technical correction.
🔥Third, the direct reason: expectations of interest rate cuts are still confusing. The sharp rise in U.S. PPI in February announced on Thursday raised concerns that the Federal Reserve's actions to control inflation are far from over.
🔥Fourth, the underlying reason: concerns about the wave of bank failures caused by high interest rates in the United States. The U.S. BTFP bank backstop plan expired on March 11. The plan was launched in March last year when at least five banks including Silicon Valley Bank in the United States collapsed. In order to prevent the disadvantages caused by continued high interest rates, the plan was launched. However, after expiration, the stock prices of U.S. community banks have plummeted recently, and the sentiment of bank failure has struck again.
🔥Fifth, fundamental reason: Bitcoin has been highly controlled by Wall Street. As everyone knows, after 312 in 2020 and after previous plummets, Wall Street in the United States has accumulated a large amount of chips at very low costs, so it successfully passed the ETF last year. Bitcoin has become an American financial instrument, and it is highly controlled. After the current breakthrough to new highs, especially when the halving is coming, if we want to get out of a longer-lasting bull market, we must clear out more unsteady players, plunder more chips, and reduce the cost of pulling the trigger. Let Bitcoin become a stable luxury product with the function of gold.
The bull market is bearish but not short. Once you understand these reasons, you should know the next operation ideas. According to the calculations of the new strategy, the targets of this bull market are expected to be 120,000 and 250,000 respectively.
★Pay attention to new strategies and don’t get lost in investing!
