Last night, $BTC experienced a massive drop, with the entire network waking up to a liquidation of $345 million.
The reasons are twofold: however, there are four major positive points for the future, still firmly believing in a bull market!!
The reasons are two:
Firstly, on October 26, The Wall Street Journal reported that Tether might face penalties due to business dealings with organizations on the U.S. sanctions list, causing panic and resulting in long positions being liquidated; currently, Tether has refuted this.
Secondly, the war factor, with Israel launching an attack on Iran, which may have subsequent developments. Additionally, the events in Turkey are temporarily set aside. This is also the reason for being cautious about large-scale entry into the spot market; Bitcoin dropped 5% but will quickly rebound, while altcoins may remain stagnant for a long time. Although some positions were lost, there is hope for acquiring lower chips in the future.
However, the situation has stabilized now.
Currently, there are four major positives.
1. U.S. elections and regulatory progress
The uncertainty of the election results is currently dragging down market sentiment. However, the crypto sector now has the most effective political lobbying and bipartisan support in Congress. Therefore, regardless of who ultimately takes the White House, legislation supporting crypto technology is expected to be passed in Congress.
2. Interest rate cuts and economic stimulus
The market has indeed entered a global monetary easing cycle. In the future, any signs of economic weakness will be met with overwhelming stimulus. Low-interest rates, ample funds, and government support create an extremely attractive environment for cryptocurrencies.
3. Accelerating ETF liquidity
Major securities firms are expected to allow recommendations for Bitcoin ETFs to clients in the coming months. This may lead to ETF flows entering a glorious period in the fourth quarter and in 2025, potentially driving Bitcoin prices to historical highs.
4. Killer applications and exciting new product launches
Cryptocurrencies are thriving due to killer applications and the emergence of new blockchains. From stablecoins to DePIN to prediction markets, multiple killer applications are expanding simultaneously. Meanwhile, optimism surrounding new blockchains like Near, Sui, Aptos, and Monad is also steadily building.
