The cryptocurrency market has plummeted, and buying these coins at the bottom can lead to wealth! You must know this incredible news about Dogecoin in advance!
Wall Street's billion-dollar giants are shorting Bitcoin. Will it drop to 80,000 this time? What exactly happened? Let's follow Shuqin to find out~
First of all, the long-dormant Doge is about to welcome a new wave of excitement. According to the Financial Times, Doge Father Musk is about to launch trading features on Twitter, allowing 1 billion X users to conveniently buy stocks and even cryptocurrencies. Everyone will be trading coins, and this news has been confirmed by Twitter's CEO.
Elon Musk has always been the number one supporter of Dogecoin. You see, the government efficiency department he established is named after DOGE, and Dogecoin can even be used to purchase Tesla merchandise. Musk even changed Twitter's profile picture to Doge before.
Now that Twitter is about to launch trading features, Doge Father will definitely do something to attract attention and promote the trading function of X, such as placing Doge in a prominent position on the trading page or even changing the exchange's profile picture to Doge.
In fact, whether Musk does this or not is not important for the cryptocurrency market; what matters is how others perceive it. As long as it can be hyped, it’s fine. Therefore, compared to other coins with little news, Dogecoin has a huge potential for speculation in the second half of the year. The cryptocurrency market relies heavily on speculation; Doge has been cold for a long time, so buying when it's ignored is key.
From the K-line perspective, there is some support at 0.16, but stronger support is definitely in the range of 0.14 and 0.15, as that was the previous bottom. As long as Doge drops to this level, even without good news, it will naturally rebound because the shorts will take profits here and buying power will increase. It will bounce back, so you must pay attention to this range and patiently wait for buying opportunities.
Speaking of the current market situation, I believe there will be a significant correction in the coming weeks, which will be our entry point. The next CPI will definitely not be able to hold back, as the price of crude oil, which makes up a large part of it, surged 30% this month, going from 60 to 75. If you compare it to April, it surged over 40% directly.
This 40% surge can cause the CPI to rise by 0.3%, which is not alarmist. Especially when you consider that tariffs also affect prices, these will greatly lower company profits, thereby pressuring the US stock market and the closely related cryptocurrency market.
Major institutions are also secretly positioning themselves for shorts. For instance, the European billion-dollar asset management giant Abraxas is shorting the cryptocurrency market, with short positions reaching 500 million dollars, targeting mainstream coins like BTC, ETH, Sol, and Sui. One could say they are fully shorting; the main players are fleeing. If you don’t look at exchange data, you wouldn't know this at all. We also followed the trend a few weeks ago, so remember to pay attention to me for escaping peaks and buying bottoms.
Another whale, Spoofy, has also completed liquidation in the past few weeks, selling a whopping 3 billion dollars’ worth of Bitcoin, with no signs of buying back yet. All of this indicates that the market still has significant downside potential.
For Bitcoin, it’s currently similar to previous times, forming a double top and distributing at the top. Typically, distribution lasts for a month or two before a sell-off begins, and then it will start accumulating again at lower prices.
Bitcoin has now been consolidating for a month since its peak, and it looks like it’s about to enter a harvesting phase. However, for shorting, it’s better to choose coins with continuous large unlocks, as the odds of success will be greater. For example, ZRO has been unlocking 22% of its current circulating supply on the 20th of every month since June.
We have already completed our short for this unlock on June 20. The next one will be on July 20, and I will set up short positions at highs in early July, shorting until the July 20 unlock. The odds are high because ZRO doesn’t just unlock once; it will continue large unlocks over the next year, and no one is willing to take the shares, so it's a perfect shorting target—just waiting to set up a new short position in early July.
Of course, what’s more critical is that even its founder/investor is selling off. Just last night, he transferred 4 million dollars' worth of coins to Binance to sell, and he might sell more when the next unlocking occurs, after all, he wants to make a profit too. If you knew this information and shorted like I did last week, you would have doubled your money easily.
Besides ZRO, ZK, and Trump, which have large unlocks, we also shorted Bitcoin at the resistance of 106500. I've mentioned this several times, and the results exceeded expectations, dropping to 102400. This shows that opportunities are left for those who are prepared. We are updating these operations and points in real-time, so if you’re interested, come take a look.
Alright, let’s continue. The conflict between Trump and the Federal Reserve is escalating. He has been consistently criticizing Powell’s policies, saying he should cut rates by 250 basis points. However, the recently concluded Fed meeting shows that there will only be two rate cuts this year, with the earliest in September.
But do you know? Wall Street capital has already bet on a super rate-cutting cycle in the second half of next year, planning to buy all assets at low prices in the coming months. The reason is that Powell will resign in May next year, and the new Fed chair will be personally appointed by the president, so Trump will definitely choose someone who listens to him and is willing to cut rates significantly.
When the new officials take office, it's just a matter of releasing water—floods, seawater, tap water. This will cause some inflation, but Trump doesn’t care about that. Inflation is just inflation; after all, the cryptocurrency market and US stocks are soaring, and Wall Street is getting rich. The government can also gain capital gains tax from this.
Moreover, low interest rates will significantly reduce the repayment interest on US debt, which will ultimately reduce the US fiscal deficit. For Trump, reducing the deficit is the top priority; his tariff goal is to collect taxes to repay debts, even if it means temporarily sacrificing the economy.
Therefore, the super rate-cutting cycle in the second half of next year is very important; it will be comparable to the massive liquidity released during the pandemic in 2020 and will last for many years. It will be the starting point for a new bull market, and you must seize that opportunity!