The cryptocurrency market has seen a significant drop with over $370m worth of liquidations, mainly on Bitcoin and Ethereum. This could be due to manipulation, causing a cascading effect that could lead to a further drop. The market is expected to be volatile due to the upcoming FOMC hike meeting, with expectations of higher interest rates. The market is also concerned about potential new regulations coming from the Biden administration to oversee cryptocurrency and blockchain technology. Ethereum has dropped significantly following the successful merge due to the “buy the rumor, sell the news” phenomenon. However, there are potential opportunities for dollar-cost averaging in Bitcoin miners and blue-chip stocks during this bear market.
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Understanding the Current Crypto Market
The cryptocurrency market has taken a significant hit recently, and it has left investors worried. In this article, we will go over everything that is happening in the market to help you make informed decisions. Please note, however, that nothing in this video constitutes financial advice.
Wrecked Liquidations in Bitcoin and Ethereum
Over $370 million worth of liquidations occurred recently, mainly on Bitcoin and Ethereum. This happened because people went long and expected the price to rise, and hence now they are getting liquidated. The market could potentially be experiencing manipulation, which pushes the price down to gain liquidity from the market. This creates a cascading effect that could result in a much lower market price.
Buy Zone Drawing
Although a drop to around $17,000 is entirely possible, the charts show that we are in the buy zone. In fact, the buy zone has been talked about for a while now, and the market has tested it a few times. It is possible to make the best of this situation by buying more Bitcoin.
Expectation of the Lows
It is expected that Bitcoin will drop further from here, with a retest of the lows of $17,500 and potentially as low as $14,000 to $12,000. However, this is not expected to last very long, and the major lows are potentially already in. Although this is total speculation, it is what is seen in the charts.
FOMC Hike Meeting
The next two days could potentially be very volatile for the market because of the FOMC hike meeting. This meeting will reveal the interest rates coming into America, upon which the rest of the world depends. If interest rates are higher than expected, the market could be bad for the market, and we could see some relief coming in if it is lower.
Joe Biden and the White House
There is a plan to oversee cryptocurrency and blockchain technology much more than before. This is coming in to stop scams and lay the groundwork for a lot more regulation to enter the market. While we are in a bear market, it is expected that there will be a significant amount of regulation coming into the market.
The SEC
The SEC is talking about Ethereum becoming a security, which could worry the market. Since the merge, Ethereum has seen drastic drops. We have dropped around 11%, even though the merge was successful, and this is a learning curve for the market.
Cardano Basil Hard Fork
Cardano has experienced a hard fork leading to a 10% drop in the market, much like the rest of the market. We are currently in a bear market for 304 days, giving hope that there is potential in the market. It is essential to note that some opportunities to invest in Bitcoin miners and blue-chip stocks could bring the most financial return.
Conclusion
In conclusion, the market is experiencing a bear market, and although there may be hope for a boom cycle to come, it is essential to keep an eye on the charts and invest wisely. There is no guarantee of what will happen, and it is essential to remain cautious.
