WHY IS CRYPTO MARKET DUMPING
HARD AND WHY BITCOIN CRASHED
FROM $110,000 TO $76,000 ?
SINCE FEBRUARY, THE CRYPTO
MARKET IS IN A PAINFUL
DOWNTREND.
HERE ARE 2 MAJOR REASONS
BEHIND THIS DUMP 👇
1) 🇺🇸 US STOCK MARKET CRASH
IN THE PAST FEW WEEKS, THE US STOCK MARKET HAS ERASED $5.5 TRILLION.
THIS IS PRIMARILY DUE TO TRUMP TARIFFS ANNOUNCEMENT WHICH HAS CAUSED A LOT OF MARKET UNCERTAINTY.
NASDAQ IS DOWN 10%+ AND HAS NOW OFFICIALLY ENTERED THE CORRECTION TERRITORY.
DUE TO HIGH CORRELATION BETWEEN STOCK AND CRYPTO MARKET, BTC AND ALTS ARE GOING DOWN TOO.
2) JAPAN'S RISING BOND YIELD
JAPAN'S 20-YR BOND YIELD HAS REACHED ITS HIGHEST LEVEL SINCE 2006.
THOSE INVESTORS WHO BORROWED CHEAP YEN TO INVEST IN GLOBAL MARKETS ARE NOW CASHING OUT.
THIS IS SOMETHING SIMILAR TO WHAT HAPPENED IN AUGUST 2024 WHICH CAUSED THE YEN CARRY TRADE CRASH.
WHAT WILL HAPPEN NEXT?
AS OF NOW, BOTH STOCK AND CRYPTO HAVE ENTERED OVERSOLD TERRITORY WHICH OFTEN LEADS TO A QUICK BOUNCE.
THE MARKET HAS ABSORBED MOST OF THE BAD NEWS SO I'M EXPECTING A FEW MORE WEEKS OF BAD PRICE ACTION BEFORE BOTTOM.
AFTER THAT WE'RE GONNA WIN SO MUCH, WE ALL WILL GET TIRED OF WINNING.