[Analysis] "Bitcoin Drops Sharply Due to Trade Conflicts... Buying Pressure May Increase"
Summary
- It was stated that Bitcoin dropped sharply due to trade conflicts involving the United States and China.
- Reported that large-scale liquidations in the futures market expanded short-term volatility.
- Predicted that this downturn could provide an opportunity for new funds to flow into Bitcoin.
Bitcoin (BTC) failed to maintain the $100,000 level amid the tariff war between the United States and other countries, but this drop may actually attract buying pressure, according to some analyses.
On the 5th, a CryptoQuant contributor, Shayan, stated in a report, "The recent cryptocurrency market has shown extreme volatility and has experienced a sharp decline. The main cause of this drop appears to be trade conflicts involving the United States, Canada, and China."
Shayan also pointed out that the increased volatility led to large-scale liquidations in the futures market. He explained, "About $500 million worth of long positions were liquidated in the futures market, which further expanded short-term volatility."
He also predicted that new funds could flow into Bitcoin due to this downturn. Shayan said, "While it's true that investor sentiment has weakened and trading volumes have decreased, this could actually provide an opportunity for new buying pressure to emerge."
Uk Jin
wook9629@bloomingbit.ioH3LLO, World! I am Uk Jin.
