In the past few weeks, the price of Bitcoin has continued to fall, mainly due to the collapse of FTX. Reports of FTX hackers followed. BTC hardly has enough time to achieve a large-scale recovery, and its latest performance is like its previous highly unstable performance. Price is not the only thing affected.
Investor sentiment has also suffered a huge blow, weakening the recovery ability of Bitcoin. Investors fear buy backs just to make prices fall even lower. In addition, due to worriesThe risk in the FTX era, most buyers still hold a wait-and-see attitude. Institutional demand is a very popular area.
Although there is a discountInstitutional investors such as Purpose Bitcoin ETF Holdings have not bought back. This confirms that investors are waiting to see if the market will recover.
After the latest crash, the low implementation rate of leverage position obviously reflects the insufficient demand. This can be observed in the estimated leverage ratio of Bitcoin futures, which has dropped sharply this week.
Why is the average cost most meaningful compared to the special currency?
Many investors are still afraid to buyBTC stocks, especially now. This affects its resilience. However, this does not mean that the current market situation is a bad one
The market may recover gradually, and those who wait for the opportunity of bottoming will lose an opportunity. On the other hand, it may fall further.
It is quite difficult to grasp the market opportunity, especially under the current market conditions. Therefore, the best strategy is to maintain the average cost after each decline.
Following the whale's footsteps may also be a useful strategy. For example, in the past two days,BTC has experienced some relief from the bear market. It is no coincidence that whales have been accumulating at the same time, thus contributing to the recent rise.
Bitcoin is significantly discounted from its current high, which means that the current price level is very suitable for entering the market. However, there is still a risk of further decline, but then again,BTC has a history of unexpected rebound. For long-term investors, the average cost strategy for each decline is the best choice.