Hi, girls and boys, welcome to Uncle Cat Talking about Coins.
As of the date of this article, the BTC price has reached 30,200 points. To be honest, this price surprised and made many people regret it.
Overall, after experiencing the high point of 3100 points this year, most of us have reached a consensus that if the bull market starts here, BTC will definitely pull back to 25000 points. The market must also be cold to an absolute low point before a turning point can occur. But the reality is that BTC directly started the explosive pull mode after breaking 24800. Of course, up to now, there are still many friends who think that the high-level pull-up is a sweet trap. In fact, this matter cannot be too subjective. I have always said that when doing transactions and looking at risk markets, you must look at it from a macro perspective to appreciate the real market sentiment.
The trigger for this rally was an ETF application from BlackRock to the SEC. In fact, in recent years, many consortiums have applied to the SEC for BTC ETFs, but all have been rejected. But why would BlackRock's application cause such a big market sentiment? In fact, the reason lies in BlackRock's status. This status is not only in the financial world, but in a certain circle, it does represent certain trends. There were many companies like Grayscale that applied before, which represents the importance of traditional finance to the crypto industry. But overall, the size of the crypto market is still a relatively small child for the global financial system as a whole. People don't pay attention to it, but they won't despise it. For many market makers, it is at most a tool for harvesting. But BlackRock's application brings something different.
BlackRock, as a top financial institution in the United States and even the world, has an overall asset valuation of 8.6 trillion US dollars in 22 years. Its business covers most of the financial investment systems we know, and it ranks first among asset management companies in the world. Simply put, it represents the vast majority of financial institutions in the world. As a big player in the financial industry, it must have looked down on the crypto market before. The reason is simple: the market value is low and the profit is low, of course, relative to their size. Today's application for ETF means that if it is approved, BlackRock will need to purchase a large amount of BTC in reserve to allow the ETF business to proceed. This also means that institutions of this size like BlackRock have made new understandings of BTC and taken actions.
When an absolute boss in an industry approves something, what will others in the same industry do? Grayscale? Charles Schwab? These companies are all waiting for the result of BlackRock's application. Their applications failed before because they were not big enough. The big boss BlackRock is gone, and the US government needs to pay attention. And as people in the industry, they all understood the emotions at the first time. In fact, whether BlackRock's application is approved or not, it has already represented its attitude of preparing to enter the crypto market. It is natural that the big bosses will follow suit.
At the same time, Fidelity Asset Management, which is of the same scale, also began to lay out the crypto industry through its subsidiaries. Fidelity, Citadel, and Schwab jointly support an exchange, which is support, not a simple investment. The lack of a promised amount may represent full support. The establishment of a new exchange directly broke the US pattern of the crypto market. The establishment of the exchange at this time directly shows the compromise and layout of the US government. As mentioned before, the SEC suppressed Binance for several reasons, including financial power, market share, and FTX's personal grudges. Now that Binance's financial power in the United States is under control and Binance's market share in the United States is seized, the United States will certainly lay out its own chess pieces as it should. The new exchange was established in response. The key issue is that the new exchange uses a non-custodial model, and the user's funds do not belong directly to the exchange, but will be directly monitored by a third party. I believe that those who understand this third party understand it. Everything is going according to the plan of the US government. Of course, there is no doubt that this method is also one of the strategies for regulating the crypto market.
BlackRock, Fidelity, and other global financial giants have entered the crypto market, and their layout has exceeded the usual cognition. In the past, we all knew that market makers entered the market, absorbed funds at low prices, and sold them at high prices, and then left after harvesting. But the market is different now. What the United States, BlackRock, and Fidelity do is no longer short-term bottom-absorbing and high-selling profits, but more and larger markets. As mentioned earlier, for the market value of companies like BlackRock and Fidelity, the crypto market is not worth mentioning. So the pattern and profit space they pursue are also unimaginable to us. The SEC suppressed Binance, causing the entire crypto market to flee funds and prices to suffer setbacks. At this time, BlackRock Fidelity entered the market, laid out BTC ETH and many leading copycats, and inadvertently ate a lot of chips. Don't worry about their short-term shipments, why? You think BTC's current 30,000 points is a high point, but in their eyes, BTC's current market value of more than 500 billion is just a child's level. Their entry can use the funds in their hands to pull up the market in a large amount in some way, and along with mobilizing market sentiment, it is inevitable that the leeks will chase the rise. As the price continues to rise, when you think it is time for a correction and the pressure level is right, you will break through it directly, making everyone feel that the bull market is coming. The expansion of the entire sentiment will attract more investors to enter, and the continuous expansion of the market may expand to a degree that you cannot imagine. The expansion of the market is what they are pursuing. You can make money by selling high and buying low, but you are always a passerby. When you control the market, expand the market, and attract more players to enter, you will become a dealer from a participant. At this time, your long-term profit is much higher and longer-term than that of a market maker. Have you ever seen a casino worrying about its business being too big? No, this is the dealer's thinking.
Many people talk about following the thinking of the main force of the banker every day, but they can never get rid of the thinking mode of the leeks. Only by getting rid of the traditional thinking mode and looking at it from a macro perspective can we understand that the banker is playing a bigger chess game. What we think is the high point is just the low point in the eyes of the banker.
In BlackRock's application, it was mentioned that their purpose was to activate the crypto market, to activate the domestic crypto market. Everyone should understand the meaning of this sentence. The capital sickle of the US empire has been hung on our heads. There is no way, financial wars always appear inadvertently. All we can do is to protect ourselves.
I switched to long-term thinking directly from BTC standing firm at 27,000 points, just by understanding their thinking. When you don't understand Wall Street thinking, you have already lost. This is a sentence from a fan's message, which I think is very true. From short to long, the bear bottom we thought has quietly turned into the starting point of the bull market. The current price of BTC is at the 30,000 mark, which will not break this year's high for the time being, and the transaction is also low. At this time, we need to be cautious. According to my thinking, the main force may not be limited to this point of profit. They are just laying out now. What they need is to expand the market sentiment. Therefore, in the short term, BTC 35,000 or 40,000 is not a dream. The arrival of this bull market may be due to the emotional mobilization of BTC. This bull market may also exceed our expectations.
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