Tom Tucker
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I woke up to a sea of red, and I've seen a lot of you guys asking what's going on. So, I did a little digging and here’s my take on it.
From what I can see, this isn't a crypto-specific issue. The main trigger was the Producer Price Index (PPI) report. My read on the data is that it came in hotter than Wall Street expected, which immediately put a damper on the market's hope for a Federal Reserve rate cut anytime soon.
When the Fed is likely to keep rates higher, it makes riskier assets like Bitcoin and Ethereum look less attractive, and that's exactly what we saw happen.
As soon as that data dropped, the dominoes fell. I watched as hundreds of millions in long positions got absolutely wiped out in a matter of hours, leading to a cascade of liquidations that topped over a billion dollars. This forced selling, combined with some people taking profits after our recent highs, sent Bitcoin from nearly $124K down to around $117K, with Ethereum following suit.
In my opinion, this isn't a sign of weakness in the crypto market itself. It’s just how sensitive this space has become to global macroeconomic news. We're no longer in a silo, we're part of the bigger financial picture. So, my advice is to take a breath and zoom out. These moves are a normal part of the cycle, and for me, it just proves that patience and a long-term view are more important now than ever.
$BTC | $ETH | #HotJulyPPI
From what I can see, this isn't a crypto-specific issue. The main trigger was the Producer Price Index (PPI) report. My read on the data is that it came in hotter than Wall Street expected, which immediately put a damper on the market's hope for a Federal Reserve rate cut anytime soon.
When the Fed is likely to keep rates higher, it makes riskier assets like Bitcoin and Ethereum look less attractive, and that's exactly what we saw happen.
As soon as that data dropped, the dominoes fell. I watched as hundreds of millions in long positions got absolutely wiped out in a matter of hours, leading to a cascade of liquidations that topped over a billion dollars. This forced selling, combined with some people taking profits after our recent highs, sent Bitcoin from nearly $124K down to around $117K, with Ethereum following suit.
In my opinion, this isn't a sign of weakness in the crypto market itself. It’s just how sensitive this space has become to global macroeconomic news. We're no longer in a silo, we're part of the bigger financial picture. So, my advice is to take a breath and zoom out. These moves are a normal part of the cycle, and for me, it just proves that patience and a long-term view are more important now than ever.
$BTC | $ETH | #HotJulyPPI
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.
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