The cryptocurrency market plunged yesterday, and Bitcoin fell by nearly a thousand points. The main influencing factor was the sharp drop in European and American stock markets.

In terms of U.S. stocks last night, the Dow fell 3.43%, the largest daily drop since June 11, the Nasdaq fell 3.73, and the S&P 500 fell 3.53%, also the largest daily drop since June.

European stock markets fell across the board. The German DAX30 index fell 4.17%, the British FTSE 100 index fell 2.55%, the French CAC40 index fell 3.37%, the Spanish IBEX35 index fell 2.61%, and the Italian FTSE MIB index fell 4.06%.

The main reason for the decline in European and American stock markets is the second outbreak of the epidemic in Europe and the United States. At present, the number of infections in the United States has increased by more than 80,000 in a single day. In Europe, the increase in France has exceeded 30,000 in a single day. Daily growth of more than 20,000. Among them, French President Macron has announced that the city will be closed on October 30, and Germany has also announced that it will start to close the city on November 2.

The resurgence of the second epidemic in European and American countries, regardless of whether the city is closed or not, will have a major impact on the economy, especially in the service industry and some physical industries that require on-site offices. The demand has also deteriorated, causing a fatal blow to some industries.

Therefore, the industry situation and the country's economic downturn are imminent. As long as the epidemic is in the upward phase, the economy will always be in the downward phase. Investors have poor economic expectations for the future, which is reflected in the financial market.

Even if the stimulus policy is adopted, it will be difficult to work. As long as the epidemic situation does not improve, releasing water will only treat the symptoms and not the root cause, unless there are measures with huge influence like the Federal Reserve. However, the current US election is coming, and the second round of stimulus policies before and after the election will not be implemented so quickly. , it is difficult to form a greater influence on the stock market.

Moreover, there is a huge bubble in the U.S. stock market itself. Many investment leaders have left the U.S. stock market. If there is no stimulus policy to keep up with it in time, the collapse of the U.S. stock market will form an avalanche effect, but it is expected that such a situation will not occur for the time being. They are also awaiting the results of the general election.

In fact, the recent rise of Bitcoin has little to do with the U.S. stock market. It is mainly in an independent market. However, when the European and American stock markets fall, Bitcoin will still fall even more. This is because the overall correlation is maintained, and only occasionally in an independent market.

Since the decline was caused by the impact of the epidemic, as long as the epidemic continues to worsen, it may have a persistent impact in the later period. Specifically, we still need to pay attention to the trend of US stocks in the later period.

November 3rd is the first hurdle. When the US presidential candidate is decided, a series of changes will also take place in the financial market. Of course, this is only short-term. In the long run, it depends on the policies of the new president.

The recent situation of Bitcoin itself is very optimistic. It is good news as soon as you open your eyes. Grayscale has been buying and selling to support the price of the currency. Paypal has also entered the cryptocurrency market before. Currently, Paypal has officially launched Bitcoin trading services.

This is a real benefit to the currency circle, which is equivalent to opening a steady stream of capital inflows for the currency circle. Some people worry that there is no private key and no private address when purchasing on Paypal, so it is recommended not to purchase through Paypal.

We think that this aspect has little impact, and it will not affect the inflow of funds from Paypal. We have also said before that the people who buy bitcoin through Paypal are mainly Paypal users, not professional currency circle personnel, and Paypal is very important to the purchase Cryptocurrency is more like a wealth management product. For Paypal users, the so-called decentralized key is not required. Just pay attention to the ups and downs. For us, the most important thing is the over-the-counter funds. inflow.

Going back to the market, the highest market reset above 13850 yesterday, which was a cautious gap of 100 US dollars from the previous high, but then the rhythm was directly broken by the external market, and it is currently back to around 13000 US dollars.

On the hourly line, there was a continuous rebound after yesterday's crash, but the strength of the rebound was relatively general, it was only a normal rebound after the fall, and after the rebound ended, it started to pull back again.

The current callback is not over yet, and the probability of continued callback is relatively high. Those who want to intervene can try to take a light position, and then set a stop loss. The current first support level focuses on $12,900, and the next step is conveniently $12,600.

Yesterday's decline did not have any technical factors, mainly due to the influence of European and American stock markets, but after the decline, the market has become more subtle. The current momentum is so strong that the decline is due to external factors. After the current decline, those who originally wanted to make a correction Will the bears give up? Does it mean that there is a chance to get on the bus after the callback?

Therefore, if there are too many bullish chips on the car in the future, according to the previous market trend, it may bring hidden dangers to the market to continue to smash the market.