Coinbase shuts down margin trading. How will Grayscale perform at night?

Since November 26, the cryptocurrency market has plummeted, with Bitcoin falling back by more than $3,000, the total liquidation amount exceeding $1.2 billion, and the total number of liquidated people exceeding 107,000 , which is more than the "312" this year. The "leader" of the overall plunge in the cryptocurrency market is undoubtedly Bitcoin, and the main reason for the plunge in Bitcoin is the long holiday. Foreign investment institutions are unable to buy coins in time to support the price of the currency, and as a result, the shorts began to smash the market without scruples. The cessation of foreign institutions' purchase of coins is indeed one of the important reasons for the price of the currency yesterday, but it is not the only factor. If just stopping the purchase of coins can cause such a large correction in the market, then the market would have turned upside down before the weekend. The largest correction range on the weekend before was roughly the limit of the current market short energy, and this time the market correction has additional negative factors.

The negative factor is that the US crypto regulation has changed again, and the first victim is Coinbase, one of the largest exchanges in the world. Recently, it has been rumored that the US Treasury Department is about to implement a plan, the ultimate goal of which is to track the owners of cryptocurrency wallets and everyone involved in the transaction. The proposed regulations will require financial institutions like Coinbase to verify the owner of the cryptocurrency wallet and collect their identity information before sending digital currency to the cryptocurrency wallet . In addition, the data will also log all the above information. This policy will not only affect people who store digital currency on hardware devices such as Trezor or Ledger.

For other crypto services, using non-custodial wallets, decentralized finance (DeFi), smart contract software wallets, etc., they all need to prove their identity under the rules and can only trade under supervision. Imagine that the most deeply rooted concept of cryptocurrency is decentralized trading, but this concept will be directly overturned under supervision, which is undoubtedly contrary to the original intention of some investors to participate in cryptocurrency trading. Even if this regulation is essentially good, after all, cryptocurrency is a "lawless place" for money launderers. This not only has a major impact on individual exchanges, but also a major blow to the US crypto industry. In fact, the United States decided to take action against the crypto industry a long time ago , such as the arrest of many Bitmex executives earlier this year, and Binance was previously reported by Forbes to evade US supervision, so that the current right to clear US users , and now, Coinbase has also suffered the "bitterness" of US supervision.

On November 26, under the latest guidance of the U.S. Commodity Futures Trading Commission (CFTC), Coinbase closed margin trading. The time was just yesterday, and the short sellers also took advantage of the negative news to a certain extent. After all, once margin trading is stopped, it means that many long profit-taking orders on Coinbase will be forced to close their positions, bringing a certain amount of selling pressure to the market. However, things are not at their worst. The plan has not yet been officially implemented and has not been officially approved by the U.S. Treasury. It is just the time for the U.S. Treasury to change its term, and this term is about to expire. So if it can be dragged through this period, things will turn around in the next stage. There is also good news at the moment. Grayscale will work half a day tonight. Earlier today, the boss of Grayscale sent a tweet that made people think a lot, "OKay, it is time". This message seems to convey to the market the message that "we will come back to buy coins tonight", which is also considered to be an important reason for the market to stop falling today. Barry Silbert is currently considered the man most feared by the current shorts. Once Grayscale decides to buy coins or distributes information about buying coins, most shorts will retreat. This has been verified by countless shorts who have gone against the trend and exploded in the past month, so we can still look forward to the performance of the market tonight. Back to the market, yesterday's market did not completely fall below the daily Boll middle track, and successfully pulled back at the end of the day. Even if it fell to nearly $16,000 at the lowest, it still returned to above $17,000. But today's situation does not look good. There was an upward rebound in the morning, and it is currently in a trend of continuing to fall after the rebound. In other words, there is still a probability of continuing to explore today, and it is currently at the key Boll middle track position. If it successfully falls below, then $16,000 is also quite dangerous. Therefore, the most ideal state at present is that no matter it falls below or not, it will continue to fall from the afternoon to the evening, but after the possible action of Grayscale comes out, it will directly rebound and rise against the trend. This is a more ideal state today. At the same time, it is also recommended that everyone, when the market is below 17,000, can consider building positions in batches. Building positions in batches requires intervals between positions , so it takes time and patience to wait for the position.

ETH: At its lowest point yesterday, the price once fell back below $500, but then rebounded successfully. We also suggested yesterday that everyone could consider hoarding some ETH below $500, including today if there is an opportunity. If the position of ETH is right, it is still worth hoarding.

LTC: The current price has reached the dividing line of 70 US dollars. If nothing unexpected happens, it will continue to fall today. If it can fall to around 60 US dollars from yesterday’s low, you can still stock up some.

BCH: It should be the currency with the worst decline among all major mainstream currencies in the past two days. Friends who hold BCH should still pay attention to it. BCH had the largest increase in the previous period. If this strength is true, then the decline should not be so severe. There are still abnormal factors.

BSV: Similar to BCH, the decline is also similar. It does not have the value of an independent market in the near future. Pay attention to the support of $150.

XRP: The maximum drop yesterday was probably close to 30%, but it rebounded afterwards and finally settled at around 14%. It is not known how many retail investors have recently entered the market, but it has been made very clear that this type of currency is extremely risky.

EOS: It has returned to below $3. It is a weak variety among mainstream currencies. The recent strong pressure level is $3.

Platform coins: Currently following the mainstream decline, it is recommended to pay attention to OKB. Once it falls below 5 US dollars, you can consider depositing more. HT is a weakened version of OKB, and BNB has relatively less room for growth based on the current situation.