#MarketTurbulence Cryptocurrencies in a panic: $1 billion vanished due to three letters - PPI
An astonishing event occurred this week: $1 billion vanished in a matter of hours. All due to the U.S. Producer Price Index (PPI) rising a bit more than expected. You heard that right. It wasn't an explosion at a mining platform, or a government ban on Bitcoin, or even a tweet from Elon Musk. A number was just released, and traders lost their minds.
Even the price of Bitcoin dropped below $112,000, although we were recently informed that it "won't drop below $100,000." Well, yes, of course. We were also told that coffee prices wouldn't rise if Starbucks employees' salaries were increased.
And while Bitcoin was trying to remember whether it was a future asset or just a trendy alternative to gold, Ethereum exchange-traded funds received a surprise gift of $729 million in inflows. Institutions were saying, "Oh my God, are we in panic? Awesome, let's buy!"
Why does this matter? Because cryptocurrencies, which were previously promoted as being independent of the system, are now reacting to macroeconomic news faster than the bond market. We live in a world where Bitcoin fears inflation, while Ethereum rejoices when everyone else is tense.
And here is the main question:
Is this the end of the love story of cryptocurrencies or the beginning of a new game?
If you asked veteran Bitcoin traders, they would say, "HODL the coin." If you asked the traders, they would say, "Set stop-loss orders and wait." Or speculators would say: buy in panic and sell in euphoria, just like every savvy speculator has done over the past three hundred years.
Meanwhile, the market is not about technology, nor freedom, nor blockchain. The market is a stage. And the best seat tickets are the most expensive, especially since the PPI is behind the scenes.
