Dear family, let me first update you on the latest market conditions for Sunday. Multiple bearish factors are stacking up, and options expire today as well. Risks must be kept firmly in mind.

Currently, BTC is priced at $59,960, repeatedly seesawing below the $60k mark. Yesterday it touched a low of $58,995, halved from the year's high. The Fear and Greed Index remains at 13, deep in the extreme fear zone.

In the past 24 hours, over 150k people were liquidated across the network, with total liquidation amount of $1.1 billion. 80% were long positions stopped out, all small capital using high leverage to buy the dip on bounces, and a single wick directly wiped them out.

Here are the four core bearish factors currently suppressing the market:

1. The Fed's hawkish expectations have fully materialized. May PCE inflation rose higher than expected, and the market unanimously predicts no rate cuts within 2026, with even the possibility of a rate hike. US bond yields continue to rise, interest-free crypto assets are being sold off, spot ETFs have seen large net outflows for multiple consecutive weeks, and incremental buying power on exchanges has completely dried up.

2. At 16:00 Beijing time today, quarterly options will be concentratedly settled. The current market has entered a negative Gamma zone, and the $60k mark has completely transformed from support to strong resistance. Before settlement, institutional funds are hedging back and forth, and wicks and wide-range oscillations will run through the afternoon, with short-term volatility directly doubling.

3. The long-tail selling pressure from Mt. Gox continues to exist. The remaining over 30,000 BTC will be distributed in batches until the end of October. Low-cost holdings will see profit-taking sell orders as soon as there is a slight rebound, locking in upward space for the medium to long term. Every large on-chain transfer will trigger panic selling in the market.

4. Market funds are continuously being diverted. A large amount of hot money is flowing into the AI sector, institutions are simultaneously reducing their BTC holdings, and large players have been distributing for multiple consecutive days. Coupled with US-Iran geopolitical tensions driving up oil prices, this further exacerbates inflation concerns and is bearish for risk assets.

Now let me give some practical suggestions for retail investors with small capital of $3,000 or $400 USDT:

First, avoid high leverage during the afternoon settlement window. Never touch 20x or 50x contracts. The back-and-forth stop-loss sweeps are unbearable;

Second, do not go against the trend to buy the dip with heavy positions. Before the $60,000 level is held, all bounces are just pauses in the downtrend. Without a clear stabilization signal, stay in cash and wait.

Third, split your position and enter in batches. Open no more than 20% of capital per trade. If the direction is wrong, take a small stop-loss. Do not hold losing positions and do not fantasize about the market saving you;

Fourth, whenever a position shows floating profit, immediately lock in profits in batches. Currently, the sustainability of bounces is very poor. Being greedy and holding on can easily cause all profits to be given back;

Finally, remember the core logic: The crypto market never lacks opportunities. Only those who can stay at the table for a long time and protect their principal have a chance to profit. In a bull market, everyone is a master. This kind of volatile market with multiple bearish factors resonating is the real test of trading discipline.

Risk warning: The above is only market information interpretation and does not constitute any trading or investment advice. Cryptocurrencies are extremely volatile, strictly control your positions and leverage. $BTC ‌