The market has been bloodied! Why did it suddenly drop so sharply?

Today, the global market, especially cryptocurrency, has plummeted significantly. Bitcoin dropped nearly 5%, while Ethereum fell even harder, losing 10%. Several forces are exerting pressure downwards behind this.

First, there is renewed conflict in the Middle East, which has scared everyone. Israel has bombed Iran, and the conflict between the two sides has suddenly escalated. Once this news broke, those who invest panicked and quickly disposed of their 'high-risk' assets like Bitcoin and stocks, fearing that if they moved slowly, they would incur greater losses. Gold and oil, which act as 'safe havens', have instead seen price increases.

Second, borrowing has become more expensive, and everyone is losing interest in investing. The monetary authorities in the U.S. have released messages that led everyone to believe that interest rate cuts are not on the horizon for the short term. Money has become more valuable, and who would want to use it to speculate on high-risk assets? Additionally, there’s some discord between the U.S. and China in business, with potential mutual tariffs looming, creating global uncertainty that makes people hesitant to invest recklessly.

Third, a bunch of 'time bombs' have reached their maturity, injuring quite a few people. Today, a massive wager involving Bitcoin and Ethereum is set to expire, worth over $30 billion! On days like this, the market is already prone to volatility. Even worse, in the past day, many who borrowed money to invest in cryptocurrencies faced liquidation, with forced sell-offs exceeding $12 billion, primarily affecting those betting on price increases who suffered significant losses.

Fourth, prices have risen too much, so a breather is normal. Bitcoin previously surged dramatically, nearly reaching $110,000, and it seems to be running out of steam. Just like running a marathon, after a sprint, one must slow down. Technical indicators also suggest that a short-term pause and adjustment may be necessary.

The market is continuously changing, and we are closely monitoring it to seize new entry opportunities. Like and comment, let’s navigate the bull market together and capitalize on this great opportunity.