Opinion: This drop is just a regular market shock

Author: @0xChainMind , crypto KOL

Compiled by: Felix, PANews

CZ predicted the recent collapse as early as 2020. In addition, Federal Reserve Chairman Powell also stated that the Federal Reserve could not hold Bitcoin, and Trump's government reserve plan was hindered. Today's market conditions may not be clear to many people. What is the "truth" behind the current market decline?

The past two days have been a nightmare for all cryptocurrency investors, with Bitcoin falling about 15%, bringing down the entire crypto market. Market sentiment quickly changed from "the bull market is here" to "the bull market is over." But few people know that this may be part of a government plan to "drive away" all uncommitted holders from the market.

Markets began to pull back slightly after Powell's speech, where he said the fight against inflation had slowed.

Those words mean they have no plans to lower interest rates. We all know that low interest rates are a key driver behind bull markets.

Inflation information was also released and was lower than everyone expected. Affected by this, the probability of raising interest rates in March rose to 46.9%. But something seemed wrong.

This negative macro factor seems to be the only reason for the decline.

The Trump campaign has been actively hoarding assets during the decline. In just two days, they bought over $70 million worth of ETH, WBTC, and other altcoins.

This brings to mind potential market manipulation.

The market was overheated and obviously the government decided to cool it down.

This is good for both the market and the government. Because it’s much easier to hoard Bitcoin when prices are lower.

If you think the beginning of this article is just to attract reading, you are wrong.

Back in 2020, CZ said in a tweet: Waiting for new headlines: #Bitcoin “plunged” from $101,000 to $85,000.

Now CZ posted again: "Waiting for new headlines: #Bitcoin hits new all-time high again."

The tweet clearly reflects CZ's optimism and clear understanding of what's going on.

The only other thought that came to the author's mind after CZ's tweet was that the price could also retrace to $85,000. That’s why it’s important to trade cautiously now and avoid taking unnecessary risks.

However, as the long-short ratio below shows, this price level could be bought out quickly.

Taking all the information into account, it's clear that this drop was just a routine swing. This is necessary for the market because when everyone is just holding, the market cannot continue to rise and a new wave of buying is needed.

As mentioned earlier, it is recommended not to engage in blind trading at this time. This is an unnecessary risk, especially if you already hold a position. The only thing you can consider is to cautiously buy Bitcoin in the $85,000 to $87,000 range.

Related reading: As the market dips, how do top traders view the market outlook?