Review and Analysis on the 7th

After watching, you will have a clear logic regarding 4.8, 4.9, and 4.10.

Analyzing the reasons for the decline, a large number of investors fled from venture capital due to the global economic panic caused by Trump's tariffs. After Powell's speech, the global market hopes for both Powell. However, the meeting did not go as expected, and the market was full of panic in the face of tariff uncertainty, especially the most feared retaliatory measures. China has adopted a 34% retaliatory tariff measure against the United States without exemption, which was implemented on April 10 like the United States, and the situation is volatile. Although there is room for negotiation between the two sides, the two sides have a tough attitude. This has exacerbated the uncertainty and panic in the market.

Why has Trump been pressuring Powell to cut interest rates, Trump is taking a dangerous step in the next step, tariffs are a double-edged sword, which is good and bad for the United States. First of all, the benefits will force the manufacturing industry to return and attract capital back to the United States. The tariffs have given Trump a bargaining chip, and he may negotiate like this, for example. You come to buy my U.S. Treasury bonds, and they have to be the kind that don't pay interest, so I'll give you tariff-free.
Next, let's talk about the disadvantages: inflation rises, economic recession, stock market crash. The consumption of the American people drives up the cost of living.
Trump wants Powell to lower interest rates, actually intending to stabilize the economy. This way, he can better wield the sword of tariffs, but Powell is also an old hand. He won't easily go off track with Trump, because one misstep could lead to further mistakes.
This is not the first time Trump has pressured Powell, he has been under pressure as early as when Trump first took office, and Powell is also stable. After many pressures, Lao Bao did not resist the pressure to cut interest rates, in fact, the main thing is that it can be lowered but not in a hurry.

The above is just a simple explanation of tariffs and the Federal Reserve.

Let's go back to why BTC has been falling? Because of the emotional panic caused by the impact of the policy, the US stock market has a certain correlation with BTC. The collapse of U.S. stocks has caused panic in the cryptocurrency market. At 2 o'clock in the morning on the 4.7th, it fell all the way, and we saw that the front of 4.7 was in a state of shock. It presents bilateral liquidity, but can reach the oscillating highs and keep getting lower and the lows lower. The bulls are weak and illiquid. Sellers, on the other hand, are affected by the news and other markets, resulting in increasing liquidity, resulting in an oversupply situation. The market has been declining, resulting in a large number of long positions being liquidated into sell orders. Such liquidated orders will be directly traded at the market price, but the bulls cannot provide liquidity. It will form a long order that is liquidated at 10 blocks and become a sell order, but there is no buy order quote at the price of 10 blocks. This order will be traded at a lower price where there is a quote, which in turn will cause more long positions to be liquidated. There is a butterfly effect, and then the stampede behavior appears, such as a giant whale with 10 yuan of liquidation, and the situation that the long order quotation is only in 1 block. At this time, a third party will take over the list. Don't discuss too much, if you want to know, you can learn about the HP chain contract whale after making a profit, leaving the difficult stall to the platform.
The previous discussion mentioned that the butterfly effect leads to unilateral liquidity, but we only talked about part of it. Don't forget that there is also algorithmic trading in the market, which occurs when certain risk conditions are met. These algorithmic risk systems will liquidate positions, leading to increased market selling pressure. Additionally, there is algorithmic trading that continuously provides sell orders for unilateral liquidity. This is why as soon as you open a position, it rushes toward your stop loss; it's because the algorithms are hitting your stop loss. I won't discuss other aspects, such as market maker operations and third-party operations; I will only mention the underlying principles of the market. You can deduce the results from there.

When this butterfly effect reaches a certain extent, the market will enter a new stage. When the market value is severely underestimated, funds will be bought in by those who are perceptive. When the market is still overestimated, it will enter a new downward spiral. Some may wonder why this butterfly effect and downward spiral appear, and yet the market is still overestimated? Child, come, you definitely haven't signed up, right? Come and sign up for a 30,000 yuan course first.
When the market experiences a spiral decline, some short-term funds will provide long positions liquidity, and market makers, seeing that the decline is almost over, will provide buy order liquidity, while funds that shorted at high prices begin to close their positions. Sell orders turn into buy orders, but the overall market remains bearish, which means the market shifts from unilateral liquidity to gradually returning to bilateral liquidity. If the market continues to be overvalued, it will push prices down to find a new equilibrium zone. If the market is undervalued, it will push prices up to find an equilibrium zone.
I won't say much more, just to give a brief overview.

The above content is a basic explanation, which contains many things. The actual situation is more complex.

If you are satisfied with the content, please give me a thumbs up. Your like is the motivation for a dude to continue posting updates.