Good morning, friends. The market has plummeted today. What’s going on? Let’s get straight to the point:
Reasons for the decline:
Interest rate cuts have been fully priced in: After the expectation of a rate cut in September materialized, some funds felt that the 'good news had been realized' and chose to take profits. For instance, some funds that bought into the BlackRock ETF early on have recently been selling, creating a wave of momentum.
Trump's actions have caused panic: Yesterday, he suddenly dismissed Federal Reserve Governor Cook, an unprecedented move that clearly escalates pressure on the Federal Reserve.
The market is worried this will threaten the independence of the Federal Reserve, directly leading to a plunge in the US stock market, and Bitcoin also followed suit.
Additionally, some recent 'unusual operations' by Trump’s team, such as plans to rename the Department of Defense to the 'Department of War', have intensified market panic, prompting some funds to withdraw.
Trump’s coin crash undermines confidence: The third coin released by his family, WLFI, has plummeted since its launch, severely impacting market confidence and dragging Bitcoin down with it.
However, the fundamentals remain unchanged:
A Filipino congressman proposed a national strategy for Bitcoin reserves, planning to buy 2,000 coins annually for five years; more countries and companies are still increasing their holdings.
China is expected to open Bitcoin trading within three years, and stablecoin policies in the US are also progressing. The fundamentals in the cryptocurrency space are actually strengthening.
There’s good news for SOL: A new wallet has withdrawn 80,000 SOL (worth $16.28 million) from Binance for staking, and US stock Sharps Technology is looking to raise $400 million to build the world’s largest SOL treasury. This operation is a solid positive for SOL.
ETH's decline is purely because it had risen too much before, a normal correction. In the past 24 hours, there has been a net outflow of 23,600 coins from CEX, indicating that funds are not fleeing but merely undergoing short-term adjustments.
Technical analysis and operational advice:
Bitcoin has already fallen near the 120-day moving average, technically looking close to the bottom. The overall direction is fine, but recent negative news (Trump’s actions, WLFI crash) needs about a week for the market to digest. For those with spare cash, now is a good time to buy Bitcoin in batches, as this price point offers good value.
Don’t let short-term panic dictate your actions; the fundamentals are stable, and a drop can actually be an opportunity.
When to enter, when to exit? How to catch strong coins? What profit-taking level to set? I will inform my fans immediately on Shiqun. Just follow my thoughts and execute what I say, and you will definitely reap the rewards!
