-🔻 Why did the currencies suddenly drop?
1. Conflicting inflation reports and the beginning of a technical break
US inflation in May came in lighter than expected (CPI at 2.4% instead of 2.5%), which sparked a sell-off due to:
Automated traders (bot liquidation)
Breaking the technical market support of $3.35 trillion
2. Geopolitical tensions in the Middle East
The United States and Israel attacked Iran, triggering a wave of global concerns that led investors to flee risk assets towards gold and the dollar.
3. Tension between Trump and Musk
The increasing political tension between former US President Elon Musk has added uncertainty to the market.
4. Liquidation of large leveraged contracts
More than $1.15 billion in long futures positions have been liquidated, especially on BTC and ETH, leading to a quick sell-off to reinforce the decline.
💡 How to smartly deal with the current decline?
🔍 Monitor support levels: such as 102k–103k for Bitcoin, and if they break, we might see a larger drop.
👀 Rebuy opportunities (dips): when panic rises, some coins are sold below their true value — it might be the opportunity.
🧱 Don't get swept up in panic: Liquidating short positions due to temporary crises is often an opportunity for smart buying.
❓ Discussion for participants:
In your opinion, was this decline a "healthy correction" or the beginning of a deeper downward wave?
Do you expect a quick rebound? Or are you preparing for a larger correction?
Press like, share your opinion in the comments, and let's build a constructive dialogue!
My next follow-up... I will analyze the best coins to take advantage of this decline 🔥
