When cryptos crash, what's next? 📉
Hey, my people! Did you wake up and see that the crypto portfolio looked like a slide? 🎢 You're not alone. The cryptocurrency market is on a tremendous rollercoaster, and it's not just for whim. It's more connected than it seems, and the main culprit comes from the north.
It turns out that inflation in the United States is relentless, and a key piece of data, the PPI (Producer Price Index), came out higher than expected. What does this mean? Investors got scared. When inflation rises, the Federal Reserve may raise interest rates, which makes people prefer 'safer' investments instead of volatile cryptos. It's as if suddenly, the roulette game is not so fun anymore. 🎲
Panic took over everyone, causing a real financial slaughter: almost 600 million dollars in liquidations. 💸 Yes, you read that right.
People who bet that the price would rise (with the famous leverage) ended up losing everything in one go. And not just Bitcoin, but Altcoins like Ethereum, Solana, and XRP also plummeted, falling 3-5%. 📉 For example, the price of ETH dropped 4% and Bitcoin is dancing around $115,000, with experts saying it could fall to $112,000. 🤯
But here comes the interesting part. The toughest analysts are seeing this downturn as something normal, part of Bitcoin's historical cycle. They remind us that in 2017 and 2021, the cryptocurrency had corrections of more than 20% before continuing on its path. It's as if the market is taking a breather before the next jump. 🤸♂️
Fear has taken over many, and the Fear and Greed Index dropped from 70 to 60. This indicates that people are more cautious, waiting to see what happens. For now, all eyes are on the Fed's decision in September.
So, what do we do? Today's lesson is that cryptocurrencies are not in an isolated bubble. What happens in the U.S. economy directly affects us. Will this downturn be a golden opportunity or the beginning of a deeper fall? 🧐 Only time will tell.$BTC $XRP $
