The market today is facing a sensitive situation after the Producer Price Index (PPI) in the US exceeded expectations. We saw a liquidation of positions worth about a billion dollars, and Bitcoin fluctuated significantly in moments. This scene not only indicates that the market is volatile but also confirms that cryptocurrencies have become more linked to macroeconomics like stocks and bonds.
What used to be said that crypto was isolated from traditional markets is now hard to believe. Federal decisions, inflation data, and even the movement of the dollar have all begun to affect the blockchain just as they affect Wall Street.
But does this mean we should tighten our belts and be more fearful? Or should we consider it an opportunity to play it right? The truth is that both answers are important.
If you are a conservative investor, you need to broaden your monitoring circle. It won’t be enough to just look at the chart or platform news. You must take economic indicators into account and devise hedging strategies like futures contracts or diversifying your portfolio between crypto and other assets.
As for you if you are an adventurer, this is a golden period. You can leverage macroeconomic news to predict big movements and make profits from the fluctuations that others see as risky. Crypto requires a risk management mindset like the stock market. Those who adapt quickly are the ones who will be able to preserve their capital and multiply it as well.
