$BTC December 6 Market Shock Analysis
#历史见证者打卡 In the early morning, Bitcoin (BTC) suddenly plunged sharply, dropping from 100,000 to around 90,000, a decline of over 10%. With ten times leverage, the entire market was wiped out, and the liquidation amount reached 1.5 billion USD. This is the first occurrence since the price level of 75,000, indicating that someone is manipulating the market to trigger liquidations. However, the BTC market is open, and the manipulators are not ordinary players; those who play this game must be prepared to accept the risks.
BTC fees have soared to an annualized rate of over 50% yesterday, and fees are negatively correlated with market conditions, as per the old rules. If the price does not drop, the fees remain high, and the cost rate is also a good strategy.
In this wave of decline, altcoins did not follow the drop, as the plunge was too rapid for altcoin prices to react. The market is not finished, and the bullish sentiment is too strong, requiring liquidations; this is not the main players' action. Behind Bitcoin are international capital players, while altcoins are mostly smaller traders.
Theoretically, if Bitcoin triggers crazy liquidations of bullish positions, the market will become healthier. Altcoins not following the drop may continue to rise. However, a liquidation of 10 billion is a bull market phenomenon; if altcoins follow the drop, a liquidation of 20 billion is also not impossible.
This is a signal of increased market volatility. If Bitcoin drops 10% instantly, altcoins will drop even more violently. If you can't sell at the highest point, continue to sell in batches. DeFi has recently doubled; it is recommended to double or triple your investment, focusing on arbitrage. Altcoins have an annualized rate of 100%, and it is difficult for bulls to maintain high-interest long positions.
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