New Fire Technology CEO Weng Xiaoqi: There is no need to be overly pessimistic, a rapid fall followed by a rebound is a typical characteristic of a bull run.

According to Jinse Finance, Wang Xiaoqi, CEO of New Fire Technology, stated to the media today that after the big dump of BTC, ETH, and other mainstream tokens early on October 11, there was a rapid rebound, with some coins even reaching new highs. A bull market often experiences rapid falls followed by quick rebounds, which is a characteristic of a standard bull market. In contrast, the characteristic of a bear market is a continuous downward movement. Against the backdrop of ongoing interest rate cuts and the release of liquidity, the industry fundamentals have not reversed. At the same time, Weng Xiaoqi believes that the real scale of this big dump liquidation far exceeds 20 billion USD, with many institutions and large holders facing liquidation, leading the industry into a short-term liquidity crisis. In the short term, considerable volatility cannot be ruled out, and historically, after a big dump, a second bottom confirmation is also not excluded. Non-professionals are discouraged from using leverage; one must always respect the market. On the other hand, Weng Xiaoqi believes that there is no need to be overly pessimistic. Liquidation also brings opportunities to the industry, meaning that the forces of repeated games on the market have been weakened. Once the market consolidates and forms a direction, the momentum may actually be greater. Currently, the prices of many crypto assets are already below the previous cost price of DAT company holdings. Taking ETH as an example, the average holding price of BMNR is over 4500 USD, while the current ETH price is around 4100 USD. This is a positive sign for DAT companies that have not yet established their positions. The recent big dump is due to an excessive reaction to Trump's TACO diplomacy, and there is still a high possibility of volatility in the short term, requiring attention to market risks. However, after experiencing continuous political reversals, the market will desensitize after the stress response, leading the industry to enter a more stable development phase.