June 24, 2023
The past week has been basically a game of news. I think everyone should know the reasons for these increases. First, the SEC cracked down on Binance and Coinbase, and supported an exchange that meets SEC requirements, EDX Markets. The BTC spot ETF applied by BlackRock, which caused#BTCto break through $30,000 from $26,000, will take some time to know the final decision of the SEC. If it is approved, GBTC will have a better transfer plan. Last night, Volatility Shares announced the launch of a 2x leveraged BTC strategy ETF, which once again boosted market sentiment and pulled BTC to 31,400. This is the only fund in the United States that provides twice the return rate of BTC, and it will be officially launched on June 27.
Although the recent rise is fierce, Teacher Xiaomai believes that we should not relax our vigilance. Being too optimistic or pessimistic is not a good thing, because only Bitcoin has relied on good news to pull up the market in the past few days. The overall liquidity of the market is very low, and there is no innovative narrative in the market. Bitcoin's solitary happiness cannot announce the end of the bear market. An important reason for the recent low liquidity is that the CFTC sued Binance, and the SEC sued BinanceUS and Coinbase, which involved market makers. Market makers are the largest liquidity providers in the currency market and are as important as a top exchange. This time, another heavyweight market maker was screwed, Wintermute, and this time it was not simple. It directly involved price manipulation and suspected fraudulent behavior of "wash trading". If Wintermute is successfully sued this time, a large number of market makers in the currency circle may be sued one after another. For the current low liquidity, it is undoubtedly a double whammy. The problem of market makers is not a big problem for Bitcoin and Bitcoin. The biggest impact is actually the cottage. In this case, trading cottages should be cautious and stop loss.