🔔 Why did Bitcoin suddenly big dump?


Specific policy news:
Trump stated that the United States will impose a 10% baseline tariff on the global market starting April 5, and additional taxes will be levied on about 60 countries with which the U.S. has the largest trade deficits. According to White House documents, China will face a 34% tariff, the European Union will face a 20% tariff, and Vietnam will face a 46% tariff. Other countries facing higher tariffs include Japan (24%), South Korea (25%), India (26%), Cambodia (49%), and Taiwan (32%).
*【Causes of the fall, let's break it down】
1. As soon as everyone panics, they start selling wildly.
Trump's tariff policy has made many people worry that international trade will fight again, and the stock market will be affected. In order to make up for the shortfall in the stock market, some large institutions hurriedly sold the bitcoins that could be quickly realized, just like rushing to sell things for cash.
2. The US dollar has become valuable.
As soon as the trade war broke out, everyone wanted to hoard US dollars ( after all, the whole world used it to trade ), and as soon as the price of the US dollar rose, something like bitcoin priced in US dollars became expensive, and naturally some people sold it.
3. It's time to take a break if it goes up too much
Bitcoin quickly surged to 88,000, with a short-term rise too rapid, just like being exhausted and needing to catch a breath. As soon as the technical indicators hinted at overbought conditions, the robotic program automatically started selling, and combined with the aforementioned news reasons, it fell even harder.
4. Midnight news + Retail investors' wild guesses
In the early morning, the Asian market has few people, and even a slight movement can trigger a big dump, like rumors saying that big holders are about to run away, which makes the price easily fluctuate greatly, just like rushing to grab discounted goods at a supermarket in the middle of the night.
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2. What should ordinary players do?
If you love to trade short-term:
Set the "escape line" in advance:
For example, think to yourself, "If it falls to 82,000, I will cut my losses; don't be caught off guard and regret later."
Don't get itchy fingers:
Before the policy is clear, watch more and act less, just like waiting for the typhoon to pass before going out.
If you plan to take a long position:
If it falls, consider it a discount: If you believe that Bitcoin will rise in the future, take the opportunity to buy a bit in batches while it's cheap, just like stocking up during Double 11.
Watch the movements of large holders:
Use tools to check if those "whale wallets" are secretly selling off. If they haven't run away, the fall could be an opportunity.
Don't put all your eggs in one basket:
Do not go all-in on Bitcoin; balance the risk by allocating some to gold and government bonds.
Don't borrow money to trade coins: During periods of policy turmoil, the market fluctuates wildly, and leverage can easily lead to liquidation, which is as dangerous as riding a roller coaster without a seatbelt.
Focus on three things:
Subsequent actions of Trump, news of the Federal Reserve's interest rate hike, whether large institutions have bought Bitcoin.
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Three, what signals to look for next?
1. Regarding the increase in tariffs:
If relevant countries, such as ours, retaliate, global business will be affected, and Bitcoin may continue to shake.
2. Look at stablecoins:
Look at whether USDT, a stablecoin, is issuing additional money, and it may rebound after falling if there is more money.
3. Look at the technical key points:
If Bitcoin can stabilize at 82,000, it may rebound in the short term; if it falls below, it may not be able to hold 80,000 again.
It may have to crouch around 78,000 to find support.
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The fall is due to panic from policies + too much increase, don't be swayed by short-term fluctuations. Long-term players hold steady, short-term players set their stop losses, and ordinary people shouldn't go all in, just play with spare money. Remember -- the scarier the news, the calmer you must be!()
BTC0,34%
TRUMP-0,14%
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