Bitcoin Crashes Below $60,000, Ethereum Foundation "Dump" Triggers Market ShockBitcoin prices have plummeted, breaking below $60,000 and even touching $58,000 at one point. Ethereum followed suit, falling below $2,500
Bitcoin Crashes Below $60,000, Ethereum Foundation "Dump" Triggers Market Shock
Bitcoin prices have plummeted, breaking below $60,000 and even touching $58,000 at one point. Ethereum followed suit, falling below $2,500. While I predicted a dip in the market previously, I didn't expect it to break below $60,000 so quickly. However, Bitcoin prices rebounded swiftly to above $59,000 after the crash, making me believe that a larger drop is unlikely in the near future.
This decline isn't entirely unwarranted, as the recent rebound before the crash merely brought prices back to pre-decline levels without a fresh influx of capital. The $65,000 mark was a critical resistance level to watch.
Furthermore, the Ethereum Foundation's transfer of 35,000 ETH to the Kraken exchange a few days ago raised market concerns. The foundation explained that these funds were intended for employee salaries, but the nearly $100 million sell-off is undoubtedly one of the triggers for the market downturn. Ethereum's weak performance has once again been questioned due to the foundation's "dump."
According to Vitalik Buterin, the Ethereum founder's response to a user, the foundation pays its employees an annual salary of 182,000 Singapore dollars, equivalent to approximately 1 million yuan. Considering the success of the Ethereum project, this salary level is not high, especially compared to traditional companies where founders often earn millions or even tens of millions annually. However, the foundation's annual expenditure reaches tens of millions of dollars, leading to market skepticism.
Currently, all eyes seem to be on Ethereum, a phenomenon that is not unprecedented. After the ICO craze, Ethereum was also criticized as a "coin-printing machine" with no real use. However, when a coin is widely questioned, we should perhaps follow the trend, avoid over-investing in ETH for now, but also understand that Ethereum's value is one of the few visible ones in the current cryptocurrency market. When prices plummet, we should be bold enough to buy.
Looking at short-term market trends, I believe this decline is merely part of a downward consolidation and will not continue to decline substantially for the time being. Of course, for added security, we can observe for another 1-2 days, as the daily chart does show two large negative candles. According to contract data, this decline has wiped out $170 million in long positions, a blow to the longs accumulated over the past half month.
The decline in altcoins has generally reached 20%, which, combined with their previous price levels, makes me believe this is a good entry point for medium to short-term investments.
The current bull market is extremely challenging, and as an individual, it's difficult to grasp the trend. If you want to delve deeper into the crypto world but are lost for direction, or if you want to quickly gain insights from information gaps, you can follow me for more information.
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