Recently, there has been a significant collapse in the currency circle, mainly caused by the following three reasons:
US recession and Fed policy uncertainty:
The U.S. economy is beginning to show signs of recession, and the market is worried that the Federal Reserve has once again misjudged the situation. At the recent interest rate meeting, Powell did not adopt Dudley's suggestion and failed to cut interest rates at this time.
The market generally believes that waiting until September is too late. Previously, the Federal Reserve's delay in raising interest rates has led to hyperinflation. Now it has delayed cutting interest rates again, which has worsened market sentiment. The currency circle and US stocks have encountered double pressure.
Reverse changes in transaction data on the Bitcoin chain:
A large number of Bitcoins continue to be transferred from wallets to exchanges for selling, mainly involving Germany and the Mentougou area, with the cumulative selling amount exceeding 10 billion US dollars.
Whenever the currency price rises slightly, these investors begin to sell on a large scale, making it difficult for the market to maintain an upward trend. Although the sell-off in Germany has been basically completed, there is still $2.13 billion in Bitcoin remaining in the Mentougou area. The sell-off is expected to end this week or next, and this selling pressure is about to weaken.
The positive effects faded after Trump’s speech:
Trump’s series of speeches brought short-term benefits to the currency price, with the currency price rising from more than 50,000 US dollars to 70,000 US dollars. However, the positive market effect faded quickly after the speech, causing the currency price to correct more than expected.
However, FTX will inject $16 billion in October, which is expected to trigger a huge market boosting effect. Therefore, it is expected that the currency circle will have the opportunity to accumulate energy in August and September, and may once again experience a super increase like the one during Trump's speech, and is expected to break through the previous high of $74,000, starting a new round of rising prices. If you are still waiting and watching and cannot see the market trend clearly, you will only fall due to bullishness and rise due to shortishness, free ➕👗 ➕🌍 BNB0098
The above are the main reasons for the current collapse of the currency circle and future market expectations. It is recommended that everyone wait patiently and be prepared for the super increase in October.