In recent days, there has been agitation in the dual currencies and even some small altcoins, and Ethereum, the big bitcoin cryptocurrency, has also seen rare volatile and chaotic movements.

Some friends may ask, what is the reason?

From another perspective, such volatility may be caused by the current shortage of on-site funds in the entire crypto market.

The reasons are as follows: We know that when the market has sufficient funds, the fluctuation range of the market will be larger, and another characteristic is that it is very easy to have a clear direction. The previous strong bull market and the trend after 69,000 were like this. The shortage of funds will cause the rise and fall of the market to be unsustainable, resulting in frequent V-reversals.

In addition, the rapid fluctuations of small currencies also reflect the constant rotation of market funds.

Why do we need to discuss market funds? Because according to the current size of on-site funds, it is not enough to create another big upward trend. To create a big upward trend, two elements are needed, either to stimulate off-site fund injection through news, or to attract off-site bottom-fishing fund injection through declines.

At a time when multiple platforms are struggling, I think the former is not feasible.

Therefore, no matter how chaotic the current market is, it will eventually come down. Otherwise, it will not be able to stir up the current stagnant water in the cryptocurrency circle.

We even believe that a major drop is brewing based on events on platforms such as Binance and Coinbase in recent days.

To give you a backbone, in this market situation, it is most likely that the bulls are powerless to reverse the situation.