New Fire Technology CEO Weng Xiaoqi: There is no need to be overly pessimistic. A sharp rebound is a typical feature of a bull market

Weng Xiaoqi, CEO of Xinhuo Technology, told the media today that after the sharp drop in the early morning of October 11, mainstream coins such as BTC and ETH rebounded rapidly, and some coins even hit new highs. Bull markets often fall sharply, and often rebound quickly after a sharp drop, which is a standard bull market characteristic. On the contrary, bear markets are characterized by continuous downturns. Under the background of continuous interest rate cuts and liquidity will be released, the fundamentals of the industry have not reversed.
At the same time, Weng Xiaoqi believes that the real scale of this slump liquidation is far more than 20 billion US dollars, many institutions and large investors have liquidated their positions, and the industry has fallen into a liquidity crisis in the short term. In the short term, it cannot be ruled out that there is still considerable volatility, and historically, it cannot be ruled out that there is a second recession confirmation after the slump. Non-professionals are not encouraged to use leverage, and they must always be in awe of 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, which means that the power of repeated games on the disk is weakened. After the market consolidation forms a direction, the intensity may be even greater.
At present, the price of many cryptoassets has been lower than the cost price of DAT companies that have previously established positions. Taking ETH as an example, the average price of BMNR holdings exceeds $4,500, while the current ETH price is around $4,100, which is good for DAT companies that have not yet established positions.
This slump is due to an overreaction to Trump's TACO diplomacy. There is still a high possibility of volatility in the short term, and market risks need to be paid attention to. However, after continuous political reversals, the market will be desensitized after stress, and the industry will enter a more stable development.