WHY IS BITCOIN DUMPING?
1) TRUMP NEW TARIFFS
YESTERDAY, TRUMP ANNOUNCED 25% TARIFFS ON CARS NOT MADE IN THE U.S.
IMMEDIATELY AFTER THAT, CAR MAKERS ANNOUNCED ADDITIONAL COSTS.
AS I HAVE SAID BEFORE, TARIFFS LEAD TO SHORT-TERM INFLATION WHICH IS BAD FOR RISK-ON ASSETS.
2) RISING GDP
THE REVISED GDP DATA YESTERDAY CAME HIGHER THAN EXPECTED.
THIS IS GOOD IN THE LONG-TERM BUT BEARISH IN THE SHORT-TERM.
GOOD ECONOMIC DATA MEANS THE FED WILL KEEP CURRENT MONETARY POLICY FOR LONGER.
3) LEVERAGE FLUSH
AS BTC PUMPED ABOVE $86K, RETAIL STARTED GOING LONG ON BTC.
THEY DEFINITELY FORGOT ABOUT CME GAP AT $84K, WHICH JUST GOT FILLED.
ONCE THESE TARIFF NEWS HIT THE MARKET, STOCKS DUMPED AND BTC DUMPED EVEN HARD CAUSING CASCADING LIQUIDATION.
WE COULD SEE A REVERSAL FROM
$84K LEVEL.