Bitcoinwin: The culprit behind the 15,000-point drop in BTC last week has been found
The Bitcoinwin digital currency platform market shows that after nearly a month of rising BTC finally ushered in a relatively deep drop last week. Then the BTC market last week was a major decline. The market began to fall gradually in the early morning of this Monday, from the highest 58300 to the lowest 43015, falling by nearly 15300 points, and the weekly amplitude reached 26.24%.
The magnitude of the market adjustment this time is extraordinary, breaking several key support levels in a row, but it is familiar with the callback after the previous wave of market surge. The market bottomed out at the 43,000 line again over the weekend, which was also the high point of the previous wave of rise. If the low point of the callback does not break the previous high point, then the current market is still a big bull market. At present, the market continues to fluctuate and rise. After failing to hit the 50,000 mark today, the market fluctuates around 49,000.
Why did BTC fall by more than 15,000 points last week after a good uptrend?
When the market fell sharply last week, U.S. bond yields became a high-frequency vocabulary, as if everyone suddenly began to pay attention to U.S. Treasury bonds and believed that yields were the source of the sharp drop.
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(U.S. 10-Year Treasury Bond Fixed Rate)
But why did the U.S. bond yields cause a large-scale market drop and affect the performance of the BTC market?
Because the current bond yields have formed a very steep upward curve, which shows that bond investors are generally optimistic about the future economic recovery.
On the other hand, rising interest rates on U.S. Treasury bonds represent an increase in financing costs. The financing scale of enterprises has expanded, and the future debt problem will become a focus of market attention. In addition, one of the most important factors that determine the stock market is earnings. If the growth rate of future income expected by the market is not as fast as the growth rate of debt pressure, then the rise in bond yields will have a negative effect on the stock market, especially when the current valuation is generally high, and BTC is no exception.
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(Cryptocurrency market sentiment index, approaching 0 means getting more and more panic, tending to 100 means getting more and more greedy)
The above picture is the cryptocurrency market sentiment index, which also clearly reflects that the current market sentiment is shifting from extreme greed to wait-and-see, and it may even trigger a mild panic in the market. Investors showed a relatively obvious risk aversion sentiment, which led to a net outflow of over 7 billion US dollars last week, and the market fell by more than 15,000 points.
On-chain metrics and macroeconomic indicators are core drivers of Bitcoin price. Indeed, the recent rise in US 10-year Treasury yields, driven by rising inflation expectations, is the most likely scenario. Contrary to many people's fears, although the price of Bitcoin will experience short-term ups and downs, there is still more room for upside in the long run.
After all, the impact of U.S. debt on BTC is not long-term. For short-term friends, you can come out and wait for the wind direction. For medium and long-term investors, don’t panic. After all, Bitcoin has been rising in the past one or two months, and a pullback is necessary. , After a sharp pullback to wash the market, the market outlook will also be healthier.
