This month’s upward correction is about to end. In essence, it’s driven by a short squeeze pushing prices higher, and the main force behind the rebound comes from leverage.

Over the past month, Bitcoin spot’s average daily trading volume was only $5.1 billion, nearly 30% below the historical average since 2019! This has caused supply-and-demand dynamics to start to go out of balance, with circulating tokens highly locked up—leaving only an ongoing battle among existing capital.

In simple terms, this rebound happened against a backdrop of thin trading— even with the sell side dominating the market—something Coinbase’s negative premium also reflects. In this kind of environment, price is highly sensitive to changes in buy and sell orders, and the cost to control the market is extremely low.

Also, due to off-market factors, oil prices have once again broken above the $100 mark. Judging by that, the US stock market doesn’t look any better either. Safe-haven capital therefore can’t flood into the crypto market, and there isn’t any support that can hold up on multiple fronts;

Once this month’s washout is completed, the final drop is already on the way. In August, it’s likely to be the darkest moment. If you can get through these two months, everything will get better. #夏日创作营