Don't be afraid of the crash, Bitcoin's recent "squat" is to jump higher!
The underlying logic of the yen's interest rate hike and the shutdown of mining sites, understand it to pick up bargains!
In simple terms: $BTC is dropping now, the core issue is two "short-term troubles"—the yen's interest rate hike has withdrawn short-term hot money, and the closure of mining sites has triggered emotional panic, but this is all "washing pain", not a real collapse!
First, let's talk about the yen's interest rate hike: Previously, Japanese people borrowed low-interest yen, exchanged it for money to buy Bitcoin for profit, like "borrowing a chicken to lay eggs". Now, with the yen's interest rate hike, the cost of borrowing has increased, and these people hurriedly sell Bitcoin to repay yen, causing short-term selling pressure that has driven down prices. But this is just "short-term capital relocation", it doesn't mean Bitcoin itself is failing, just like when a mall temporarily loses power and people run away, they will come back when the power is restored!
Next, let's look at the closure of mining sites: The shutdown of Xinjiang mining sites essentially eliminates high-energy-consuming "small workshops". Now, global computing power has already been supplemented by mining sites in the United States and Russia, and the Bitcoin network has not been affected at all. Instead, after eliminating backward production capacity, the industry becomes more compliant and healthier—like cleaning out inferior stalls in a vegetable market, leaving only good merchants to grow bigger!
The key benefits lie ahead: The Federal Reserve is still in the interest rate reduction channel, and the long-term trend of liquidity easing has not changed; although institutions have lowered their expectations in the short term, they have not given up, and the $BTC ETF funds are likely to flow back in to support the market; moreover, this drop is due to institutions and long-term holders taking profits, not retail investors panicking and fleeing, as the chips are transferred to more determined buyers, equivalent to "blood exchange and accumulation of strength"!
History has long proven: Every major drop in Bitcoin is a "golden pit", and after previous macro shocks, new highs can be reached. Now it is a combination of short-term emotional selling pressure and capital repositioning. Once this wave of selling pressure is cleared, along with the advancement of compliance and institutions re-entering the market, the rebound will only be stronger!
