A bunch of good news, yet the price of cryptocurrencies dropped?

The US and China have reached an agreement, tariffs have decreased, and the trade war seems to have come to a pause; India and Pakistan have also ceased fire, and the US stock market surged in response; Trump even held a dinner for the crypto circle, creating a vibrant atmosphere. It all looks like a lot of good news, seemingly no obvious bad news.

But the reality is — not only did the cryptocurrency market not rise, but tonight there was also a sudden wave of selling. Just yesterday, Bitcoin was hovering around the 90,000 mark, on the verge of stabilizing back above the nine-thousand level, but now it has fallen back, and the entire market looks a bit “half-alive”.

The worst off are those who wanted to take advantage of the easing between the US and China for a short-term gain, only to be severely taught a lesson by the market. In the past 4 hours, the total amount of liquidations across the network reached 218 million dollars, most of which were long positions being “precisely targeted”.

What is going on here? Is it really true that the old saying goes: “too much good news turns into bad news”? A few days ago, some were saying this bull market could push Bitcoin to 1.5 million dollars each, where are those people now? Shouldn’t someone come out and explain the market logic, so that everyone has a clearer understanding? After all, when the market drops, confidence wavers, and the retail investors start to panic.

Ultimately, the market isn’t sustained by shouting or expectations. Short-term sentiment can be ignited by good news, but what truly drives prices to continue rising is the consensus of funds and the support of actual liquidity.

This recent pullback reminds us: don’t be too easily swayed by “inevitable rise logic”, no matter how good the news is, keep an eye on the market trends and control your positions, or else you might find yourself left behind by the market in an instant.

So don’t rush to bottom fish, and don’t rush to sing bullish tunes, let’s first see if we can stabilize the key support levels in the coming days before deciding on the next steps.