After Bitcoin surged to 73790 last night, the market fell with the breakdown of negotiations, reaching a new low of 71310 today, and has yet to recover the 72000 mark. The short-term market remains constrained by military negotiations, and expectations regarding military matters should not be too high. Although the leaked information primarily revolves around the controversy of Iran halting nuclear weapons research, it is obviously not the main cause. The debate primarily concerns energy and transit fees, and Iran had already agreed to lift the terms regarding nuclear weapons on the eve of war, yet using nuclear arms as an excuse now seems overly concealing. It is likely that this month will still be influenced by war factors and will be temporarily shelved. Recently, Lao Cui has also been paying attention to the exchange rates, with CNY rising again to nearly a three-year high. Many friends think this is a good thing, but Lao Cui can only say it is a positive for the crypto circle; Lao Cui understands that the rise of the yuan means difficult exports and harder business; it means less survival space for a large number of manufacturing and small to medium-sized enterprises, lower profits, a sharp decrease in orders, and a large number of domestic products starting to lose competitiveness in the international market. Although money is valuable, it can easily trigger deflation. Once deflation occurs, it will become increasingly difficult for small and medium-sized enterprises, individual businesses, and ordinary people to make money. Those in debt will face even more challenges. In summary, the rise of the yuan is certainly not a positive for ordinary people, but it is a huge benefit for state-owned enterprises.

The appreciation of CNY also means the depreciation of the U.S. dollar. This can also be observed in the short-term growth of the crypto circle, which ironically benefits U.S. dollar assets. One could say the feedback from the market can offset the depreciation of the dollar. Investment is essentially a process of finding patterns; as long as it is clear that the dollar is in a depreciation process and dollar assets are in an appreciation process, then, when comparing to the crypto circle, their trends are almost identical. The situations established by both must indicate a path of value increase. From the perspective of negotiations, the time and place for the next round are still unclear, which means both sides will continue to exchange military actions for leverage, thus an outbreak is merely a matter of time.

Lao Cui summarizes: After explaining the spot yesterday, the focus today is definitely on contracts; the observation point today is merely a military negative news that clearly drove a downward trend at the time of the breakdown of negotiations. However, the support below remains strong; unless there is a larger negative news, Lao Cui's approach is to base it on short-term support, and around 71000 is the right time for entering a long position, while entering a short position might actually yield more profits easily. As long as a new high appears, even impatient users can enter at the current price, the cautious choice is to touch a new high, and everyone can enter on an hourly level. This week, there might also be short-term military conflicts, and everyone needs to be mentally prepared, keeping profits at 500-1000 points. Remember, do not hold positions overnight in the short term, and must exit the same day. Contracts should not choose small cryptocurrencies for entry, only Bitcoin and Ethereum can be the basis.

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