The market is bleeding like a river, will it continue to fall in the future?

Not long ago, the legendary trader GCR made an impressive statement. In response to comments on the market situation in June, he said that the current market is more like the late summer after the DeFi wave in 2020, or equivalent to 2021 ’s summer, we are still in a bull market.

This response made many players in the market look forward to the coming July. Just when everyone was eager to bid farewell to May and June, thinking that July would usher in a "turnaround", the market opened up for investors. Big joke. Previously, the German government sold nearly 10,000 Bitcoins, and there are still 40,000 Bitcoins for sale. Later, Mentougou received a huge compensation of 142,000 Bitcoins. After testing a small transfer yesterday, nearly 50,000 Bitcoins were transferred to a new wallet today. Address and suspected exchange address.

Stimulated by constant bad news, BTC fell sharply after falling below US$60,000. After falling below US$57,000 yesterday, it once fell below US$54,000 today, reaching as low as US$53,485. Ethereum also fell below $3,000, hitting a low of $2,810. Other altcoins generally fell by more than 10%, and some altcoins even fell by more than 20%.

The panic in the crypto market even hit a new low since September 12, 2023. Where will the market go in the future?

dForce founder Mindao: There may not be an altcoin bull market

dForce founder Mindao tweeted that we are in a cycle with a very different market structure, and now quite a lot of liquidity will flow into stablecoins, not towards stablecoins. BTC and ETH, etc. This does not mean that the major currencies in the market will not rise, but that good time of certainty may be rare. We may not have an altcoin season either.

In addition, the distribution of legal currency compensation in Mentougou has begun, which may help alleviate market panic.

Blockstream CEO: There have been six 30% declines in the historical bull market, and it is recommended to buy on dips

Blockstream CEO Adam Back said that there have been six 30% declines in the historical bull market, and the magnitude of this decline is About 26%. The recent decline has not been significant, so investors are advised not to panic and buy on dips.

OX.FUN founder Zhu Su: Repurchased ETH at a price of $2,900

OX.FUN founder Zhu Su tweeted today that he had previously sold Ethereum near $3,300 and sold it at a price of $2,900 Reconnect ETH. Hours later, he tweeted again that you won’t see this drop on the charts fifty years from now.

Santiment: Historic panic on social media, opportunity for the bold

Crypto analytics firm Santiment says there is historic panic on social media as markets continue to fall. It's rare that there are more "sell" mentions than "buy" mentions in an hour. But the past 24 hours have seen this happen, including the largest ratio of negative to positive comments since 2024. This is an opportunity for bold traders, some of whom may want to become true contrarians and buy when the crowd is angry and frustrated.

WOO X Chief Operating Officer Willy Chuang: In the long run, the negative impact will gradually dissipate

WOO The sell-off sparked some market panic, which was exacerbated by a variety of factors including German BTC sales, Federal Reserve issues, and U.S. election uncertainty.

Despite the concerns, the long-term impact may not be that severe as the market gradually absorbs the selling pressure. According to Mt. Gox's 2023 data report, the actual sell-off amount is much smaller than the total because many creditors have sold their claims to funds due to the lengthy compensation cycle. As a result, these claims are primarily held by institutional entities, with only 226 creditors owning more than 50% of Mt. Gox claims. Expect panic in the market in the short term, but in the long term these negative factors are likely to dissipate.

Placeholder partner Chris Burniske: You can’t get crazy returns without huge downside risk

Placeholder partner Chris Burniske tweeted that after rising about 10 times in 2020, SOL fell 80% later in the year %. The next year, 2021, the number doubled again by more than 100 times. It then fell 97% to near $8 in 2022, before rising about 20x since then. ETH and BTC also had similar volatility in the early days.

For the complainers, you can't get huge crazy returns without big downside risk.

If you are used to being frightened by the market, you will gradually become numb to this kind of decline and choose to ignore it. Whatever happens here, all I see is opportunity.

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