Macroeconomic background
Recent news from the USA does not add optimism: GDP decreased by 0.2% in the first quarter, which exacerbates concerns about a recession. Corporate profits fell by $118 billion, and the number of unemployment claims rose to 1.92 million—the highest level since 2021.
The Federal Reserve finds itself in a difficult situation: the economy is slowing down, but inflation remains high (3.6%). This may force the regulator to lower rates sooner than expected, which could potentially serve as a catalyst for the crypto market.
Reaction of cryptocurrencies
Against the backdrop of economic instability, Bitcoin has fallen to $107,000, and altcoins are experiencing a massive correction. Analysts are already stating that "the altcoin season is over," and the market is returning to BTC dominance.
However, history shows that it is precisely in moments of panic that the best opportunities for long-term investors are formed. Buy while everything is down? This is a strategy that has repeatedly brought profits to those who know how to wait.
What to do now?
- Analyze fundamental indicators— which projects have real value?
- Monitor the actions of major players—have the "whales" started buying assets?
- Look at the macroeconomics—will the Federal Reserve be forced to lower rates?
The market is in the red zone, but this could be precisely the moment to act. Panic is an opportunity for those who think strategically.
G
