🌞🌞🌞Brothers, good morning!!!
Take profit as soon as you wake up, #LA has now been securely pocketed, successfully bringing fans to enjoy a wave.
The reason Brother Guang brought fans into #LA short positions is:
1. Macro market sentiment fluctuations
The overall cryptocurrency market experienced a pullback at the beginning of June, influenced by the public bickering between Trump and Musk, leading to a shift in market risk sentiment, prompting a large number of longs to close positions, causing an overall market decline.
2. Structural selling pressure from long liquidations
According to Cointelegraph, nearly $980 million in long liquidations erupted across the entire cryptocurrency market in a short period, with both Bitcoin and Ethereum experiencing significant declines. This structural selling pressure also affected small-cap or low liquidity tokens, such as LA.
3. Low liquidity is susceptible to technical or automated influences
In a market with insufficient liquidity, large trades or automated liquidations can exacerbate price fluctuations, and significant declines can occur without any fundamental changes.
4. Following the market trend
The cryptocurrency market is highly correlated; when BTC or ETH falls, small to mid-cap tokens usually struggle to remain unaffected—capital outflows lead to an overall selling effect, and LA naturally follows suit.
