Due to the Trump administration's continued trade war, economists warn it may trigger an economic recession. Bitcoin fell below $78K this morning, with global liquidations of $800 million. U.S. stock futures plummeted, the S&P 500 index entered a bear market, and Asian markets face severe challenges.
Gold bull Peter Schiff points out that the crypto market has finally reacted, with Bitcoin and Ethereum significantly dropping. Ethereum has fallen to its lowest point since October 2023, down 65%; Bitcoin has broken below $81,000, approaching the low of March 11.
Ethereum has dropped to around $1500, with $800 million liquidated in 24 hours, including $284 million in Bitcoin and $228 million in Ethereum.
Bitcoin has broken the $80,000 support level, currently around $77,000, and may still conduct a secondary bottom test. Possible scenarios after the second bottom test:
The Federal Reserve is expected to cut interest rates in 1-2 months.
The U.S. is negotiating with other countries to lower tariffs.
The U.S. may publicly reveal more measures regarding Bitcoin strategic reserves.
In a panic, cutting losses is unnecessary; stay calm when the market is approaching the bottom. Strict risk control is needed in contract trading, while spot trading is relatively safer, waiting for a rebound or rise from Federal Reserve rate cuts. The key is to survive, unload leverage, and prioritize spot trading.
Market panic: how to respond?
Coinglass' Fear and Greed Index has dropped to 23, and the market has entered a state of panic again.
The trade war triggered by President Trump's tariff policies has put pressure on consumers and retail investors, severely impacting the market.
Every extreme event, market panic, and consecutive drop often marks the beginning of new opportunities brewing.
—— The moment for betting is quietly approaching.
LTC: The well-established mainstream coin is close to the $50 support level, waiting to enter after stabilization.
MUBARAK: The new meme leader of BN and CZ, with a market cap of only 40 million, showing strong fluctuations recently; focus on entering in batches near $0.28.
CAKE: Based on the BSC chain, still optimistic, but if it's just a whim of CZ, it deserves secondary attention.
EOS: A new look for Vaulta, adjusting the inflation model, focus on entering in batches near $0.6 and $0.5.
Since Trump announced tariffs on March 26, we decisively liquidated all altcoins on March 27. In just ten days, most altcoins were halved, dropping over 50%. Looking back, this decision was undoubtedly wise. In a weak market, I've consistently emphasized that spot trading needs to adapt to market changes to capture stage rebounds. Typically, after each drop, there will be a two-week rebound, with strong altcoins rebounding by 30-50%. Our strategy is to seize this rebound, exit in time, and wait for the next opportunity. Currently, the market hasn't shown signs of stopping the decline; we continue to hold cash and observe, waiting for mid-month buying opportunities.
