The cryptocurrency market has recently experienced a downward trend due to several economic and political factors that are generating this type of downward movement; here are some points to keep in mind:
⬇️ Imposition of tariffs by the United States🇺🇸: President Trump announced the imposition of tariffs on imports from Mexico🇲🇽, Canada🇨🇦, and China🇨🇳, with the possibility of extending them to the European Union. This measure has generated fears of a trade war and an increase in inflation 🎈, which has negatively affected global financial markets, including the crypto market.
Expectations regarding the Federal Reserve's interest rates: Recent statements from Fed members suggest a prolonged maintenance of interest rates at their current level, in contrast to market expectations that anticipated cuts in the short term. This outlook strengthens the dollar and bond yields, factors that traditionally have a negative correlation with crypto assets.
Massive liquidations in the derivatives market: Significant liquidations of long positions have been recorded in the derivatives markets, especially in Asia. During the early hours of Monday, over $1 billion in bullish positions were liquidated, with Ethereum being the most affected. These liquidations amplify the downward pressure on cryptocurrency prices.
These combined factors have contributed to the recent decline in the cryptocurrency market.
While things do not look good, we can observe that this is an important opportunity to enter the market and make staggered purchases that take you as low as possible, since although the short market appears bearish, long-term projections are actually very promising.
Today the market again opens the possibility of buying at more economical points, so if you are new, be patient and take advantage, the best is yet to come.
Consistency and discipline will give you the results you desire.
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