I have never seen such a fragmented crypto world!
Did you know? Large hedge funds are frantically selling, but on the other hand, the Bitcoin inventory on exchanges is hitting another low. Who is lying?
Empty, empty, empty, this small coin is about to unlock a huge amount, the odds are great, I am going to take action!
Elon Musk has completely turned against the tide, and let's see how the smart money is operating now; let’s follow Shuqin to find out!
First of all, the recent data is very strange; the ETF funds that were previously net inflows suddenly began to turn into net outflows, with the main seller being BlackRock, the world's largest capital manager, indicating that Wall Street is preparing to take profits after increasing positions from 70,000 to now, starting to distribute at high levels.
Retail investors sold at 70,000 and 80,000, then chased in at 100,000 and 110,000, starting to buy the dip and sell high. This is why hedge funds are getting richer while retail investors lose everything in crypto trading, being harvested repeatedly.
However, it is very strange that the on-chain data is not showing a downturn. The inventory of Bitcoin on exchanges is steadily decreasing, indicating that there are actually people hoarding Bitcoin, buying it on exchanges and then transferring it to their cold wallets, which has led to a sharp drop in Bitcoin inventory.
Isn't this contradictory? Wall Street is selling, but on-chain data is favorable; what is the reason for this?
Actually, this is easy to explain. The reduction in Bitcoin inventory on exchanges should be due to MicroStrategy's purchases; they hold a total of 580,000 Bitcoins. Their strategy is to only buy and not sell, and as a major player in the crypto space, they will also pump the market at critical times. Only by creating a bull market does this company have a reason to exist. Therefore, their logic differs from that of hedge funds, as they will buy a lot at high points to create a bull market and maintain Bitcoin consensus.
If you don't believe it, just look at the on-chain data for Ethereum. Ethereum's price increased more significantly in the past few weeks, already doubling from the lowest point, but the net outflow on exchanges is not much. Therefore, I believe the current trend in the crypto market is more like a top distribution rather than a consolidation of power. Once the major players finish distributing, they will start to short the market and push the prices down to begin accumulating at lower prices, which aligns with their profit model, as seen with Spoofy.
Okay, after discussing the market, let's check the situation with small coins. The following two coins are about to unlock a large amount, and we can set some low-leverage short positions on the highs.
For example, the most recent date is ZK, which will unlock 768 million tokens on June 17th, accounting for 21% of its current total circulation. This amount will definitely create massive selling pressure. We already advised everyone to short at the recent highs, and today it has fallen by 10%, but this is not over yet. We can continue to short at low multiples until the day it unlocks to take profits.
In addition, there is also ZRO, which will unlock $60 million worth of tokens on the 20th, accounting for 23% of the current circulation, posing significant downward pressure. These are excellent shorting opportunities.
If the market drops or consolidates, the pullback of these cryptocurrencies will far exceed that of the market. Even if the market unexpectedly rises, these cryptocurrencies, due to significant negative factors, won't rise much either. Many retail investors are unaware of this, which highlights the information gap!
Additionally, U.S. stocks, closely related to the crypto world, have also shown significant fluctuations. This morning, both the Nasdaq and S&P broke through recent highs, surging significantly. However, the bad news is that they are getting closer to historical highs, where resistance may be considerable, and the demand for a pullback is increasing.
Bitcoin rose alongside the U.S. stock market's breakthrough, but a pullback is needed at the previous high level. Therefore, Shuqin led everyone to short the market last night, and it had an immediate effect, congratulations to everyone. If you are interested in our daily operations, feel free to take a look.
Alright, let's continue. The market is not completely devoid of good news; for instance, the Atlanta Fed has significantly raised the U.S. GDP growth forecast for the second quarter from 2.2% to 4.6%, which is very strong. This is also why the Nasdaq has risen continuously in recent days.
However, this good news is short-term, as looking at the long term, it will delay the Fed's pace of interest rate cuts, thus continuing to maintain high-pressure rates to cope with potential tariff-induced inflation growth.
Speaking of tariffs, their side effects are likely to start emerging this week, with the first stop being this Friday's Non-Farm Payroll data, which is currently expected to decline significantly. You must be vigilant about this.
Next week's CPI inflation is also very likely to rise significantly. If the negative news materializes, I will be very curious if the crypto market and even U.S. stocks can remain indifferent.
Moreover, there is a big scoop: Elon Musk is going all out, publicly criticizing the new congressional spending bill, claiming it will add $2.5 trillion to the U.S. deficit. It’s worth noting that the total U.S. debt is currently around $30 trillion; adding $2.5 trillion would increase the total debt by 10%, which is quite substantial.
No wonder Musk is getting anxious, publicly criticizing the bill without regard for Trump's feelings, claiming that this bill is extremely absurd and could potentially bankrupt the U.S. Coincidentally, Jamie Dimon, CEO of JPMorgan, and Ray Dalio, founder of Bridgewater Associates, have also warned about a U.S. debt crisis, and Moody's has downgraded the U.S. debt rating. These are indeed some warning signals. The bond market usually stays quiet, but when it makes a sound, it signifies dire consequences.
However, I personally believe that U.S. debt will ultimately not collapse, but Wall Street will definitely short the market at some point to buy U.S. stocks and cryptocurrencies at low prices, which will also trigger significant pullbacks. This is something everyone should pay attention to. I believe that once Bitcoin finishes distributing the chips, it will start to pull back, with the bottom likely appearing in July or August, at which point I will guide everyone to buy the dip, so don't forget to follow me!
