Bitcoin continues to decline, with 210,000 people having their positions liquidated. Even Donald Trump is incurring losses

The first Crypto Summit came to an end on Saturday. Overall, it gave the impression of being grand in scale but having few tangible achievements. No policies with actual influence were introduced, and most of the statements were just general official remarks lacking in substance.

I had previously said that because of this, the cryptocurrency market had already experienced a small rebound before the summit was held. If no substantial content emerged from this summit, it was bound to cause panic within the cryptocurrency community, leading to an accelerated decline of various cryptocurrencies.

Currently, Bitcoin is generally showing a trend of declining volume and price. According to data, within the past 24 hours, the number of people with liquidated positions in the cryptocurrency market exceeded 210,000, and the total liquidation amount reached as high as $583 million.

Among them, the largest single liquidation order occurred in the Bitcoin trading pair on the Binance exchange, with an amount of $32.0875 million.

Why have cryptocurrencies dropped so much?

Regarding this recent decline in the cryptocurrency market, everyone is asking: Is there another "black swan" event? Why has it dropped so severely?

In fact, this decline in Bitcoin is not due to a single reason. I think it is the result of the superposition of three heavy blows: unfulfilled expectations, a poor macro environment, and low market sentiment. In simple terms, the market has been stunned by a "triple blow".

From a policy perspective, the market has now entered a vacuum period, with no positive news at all, and it is being sustained only by "empty promises".

Previously, Donald Trump announced with great fanfare that he intended to include Bitcoin in the strategic reserve assets, and the market was overjoyed, thinking that the US government was going to make large-scale purchases. However, he then turned around and said, "Only retain the existing 200,000 coins and will not increase the position," directly pouring a basin of "iced cold water" on the market.

At the same time, judging from the on-chain data, most long-term investors, whether they are retail investors or large investors, have not sold their holdings.

Short-term holders (with a holding period of less than six months) are frantically selling. They hold approximately 3.9 million BTC. This part of the volatility is similar to that of the large accounts of exchanges and custodial institutions. Therefore, I estimate that it is now a group of short-term investors who are stirring up the market.

Donald Trump is also incurring losses. Should one bottom-fish or seek safety?

Recently, it's not just retail investors who are losing money in the cryptocurrency market; even Donald Trump has not been spared.

Last week, he bought $10 million worth of Bitcoin and $10 million worth of Ethereum, hoping to make a profit with the announcement of the Bitcoin strategic bill. Instead, he ended up being trapped in a losing position.

What's even worse is that the WIFI fund of the Trump family has suffered a loss of up to $110 million.

They invested $336 million in 9 projects, and now the market value is only $226 million. Among them, ETH accounts for 60% of the position, with an average cost of $3,240. Now it has dropped to $2,000, resulting in a loss of 37%. Even someone as shrewd as Trump probably didn't expect to "fail" in the cryptocurrency market.

In the current market environment, long-term investors are not recommended to add to their positions or invest new funds at this stage.In the short term, as I said before, when the price reaches $75,000 to $80,000, I will choose to enter the market and go long.#btc