What's going on? Many influencers in the crypto space have been banned, and it has even made it to the news. Is cryptocurrency trading still legal now?

Be cautious! The crypto market is about to experience a major earthquake this week, with hedge funds "frantically selling off. What will happen? Will the $6 trillion U.S. Treasury repayment due this week default? How is the smart money currently operating? Let's take a look together~

Firstly, the big player in the crypto space, the U.S., is expected to experience historical turmoil this week. A misstep could lead to a significant crash in Bitcoin and even the capital markets because the burdens of the past are always borne by the future.

Everyone remembers Yellen's era in 2020, right? The U.S. issued massive amounts of debt to revive the economy in response to the pandemic, injecting trillions of dollars into the market. Now the consequence is here: the U.S. will need to repay $9.2 trillion this year, with rumors suggesting a $6 trillion payment due in June. However, this is inaccurate; the actual figure isn't that high, but it is still beyond your imagination.

The U.S. is definitely unable to repay its debts, so its method is to borrow new debts to pay off old ones, and that date is this week! The U.S. Treasury will issue 2-year, 5-year, and 7-year Treasuries on Tuesday, Wednesday, and Thursday, with 10-year and 30-year financing happening next week, capturing the world's attention.

Last Wednesday's 20-year U.S. Treasury auction faced significant issues, with no one willing to buy as actual interest rates exceeded expectations. Bitcoin experienced a sharp drop, falling from 110,000 to 106,000, and U.S. stocks also plummeted. Fortunately, there was still enthusiasm for Bitcoin as it broke past previous highs, and ultimately, Bitcoin recovered, but U.S. stocks did not.

Last night, on Tuesday, was the start of U.S. Treasury financing day. Many hedge funds are positioning short to hedge against the upcoming uncertainties, not just in U.S. stocks but also in the crypto market.

Additionally, there is a significant contradiction between the two major forces in the market, Wall Street and traditional crypto whales, whose views on the future of the crypto market are truly diverging. The net inflow of Bitcoin ETFs on the NYSE and NASDAQ is nearing record levels, with nearly $10 billion bought in this month alone.

However, traditional crypto whale Spoofy is instead selling, having offloaded $2 billion himself, reducing his stake by 75%. It seems he will clear out completely in a few days.

Therefore, when we reached the high point last week, we also began to take profits on altcoins. I’ve mentioned this several times because Bitcoin broke past previous highs by 5%, so we only needed to achieve a 20% rebound with Pepe. I advised everyone not to rush to buy the dip, and a few days ago, Pepe dropped from 0.15 to 0.12. At this moment, the value proposition became evident.

In terms of the overall direction, I personally agree with Spoofy's viewpoint, as he has consistently been able to buy low and sell high, which is a testament to his skill.

At the same time, we also referenced the "Greed and Fear Index," which shows that Bitcoin has reached an extremely greedy zone. Although it may not necessarily be at the very top, it is definitely a good exit point. The upside potential is limited, but there could be a significant correction downward because history tells us that extreme greed will inevitably lead to extreme panic. It appears that we may encounter a bottom in July or August this year.

Of course, this is theoretical; we should still wait for Spoofy to re-enter the market for specific buy-in points. If he buys in July, we will enter in July; if he enters in September, then we will too. He is a master investor with billions of dollars, and he can certainly see more than we can.

Then, last night, the positive sentiment faded. Everyone likely remembers the sharp drop after Trump took office on January 20. Bitcoin surged before the conference and then began a sustained correction after it ended.

Last year's Bitcoin conference saw a significant surge just two weeks before the event, similar to this year. However, after the conference, the positive sentiment faded, and there was a substantial correction. You need to be particularly cautious about this. As of now, Bitcoin is reported at $108,743.

By the way, the TRB I recommended yesterday is now ranked first in terms of gains.

Spot trading saw a maximum profit of 50 points, and there are still nearly 40 points of profit available. We can take partial profits in both futures and spot trading. Set a stop loss for the futures opening price, and for the remaining spot trading, set a 33 stop loss. If we aren't stopped out, we can hold on a bit longer; this time, it might really take off!

Another recent example is Trump Coin, which began a sharp rise a week before the dinner, increasing nearly 40%, but plummeted after the meeting, returning to where it started. We previously discussed shorting it on the dinner day, and now we see that it has indeed dropped 30% to 12.3, which is quite perfect.

Additionally, since last week, we have been trading Bitcoin on short-term fluctuations, going long above 107,000 and shorting at 110,000, making 4 or 5 rounds of trades. This range-bound trading has nearly been fully exploited, with precise points and aggressive operations daily. If interested, feel free to take a look.

Alright, let’s continue. The crypto market has suffered a significant blow today, with many prominent Weibo influencers being banned, and this has made it to the news. Is cryptocurrency trading still legal now?

I checked.

So, whales should still remain low-key in the domestic market; most old crypto insiders have gone overseas. Those with smaller volumes won't be targeted.

In the crypto space, there are various myths of instant wealth, luxury cars, yachts, and karaoke clubs. Many people clearly have hundreds of thousands and could relax, but they lose themselves. I advise everyone to invest rationally. It's best to be moderately wealthy; a Xiaomi Su7 is sufficient. Don’t always think about Maybachs and Lamborghinis. Greater desires mean greater risks; it could ruin you, and that’s from experience.

#MichaelSaylor暗示增持BTC

BTC BNB