8.26 Market Review: Reasons for the Drop
Good evening, brothers! Many people are unaware of what caused this evening's market crash, so let me explain briefly, and whether we can continue to buy the dip!
There are three main reasons for the drop:
1. Exhaustion of Positive News Effects
The expectation of a rate cut in September has already been released, leading to some profit-taking and early investors in BlackRock ETFs also cashing out recently.
2. Trump's Market Disruption
Yesterday, he removed a member of the Federal Reserve Board, marking a historical first. Market sentiment is concerned about the independence of the Federal Reserve, causing declines in US stocks and Bitcoin.
3. Trump’s WLFI Collapse
It plummeted right after launch, reducing market confidence and affecting sentiment, putting pressure on Bitcoin again. The current position at 109619 can be gradually built up.
