Since February, the entire crypto market has been in a painful downtrend.
Here are the 2 main reasons behind this massive dump:
✅US STOCK MARKET CRASH
Over the past few weeks, the US stock market has wiped out over $5.5 trillion in value.
The big trigger? Trump’s $TRUMP tariff announcement, which has injected serious uncertainty into the markets.
The NASDAQ is down more than 10% and is now officially in correction territory.
Since crypto and stocks are highly correlated, Bitcoin $BTC
and altcoins$ALT
are getting dragged down too.
✅ JAPAN’S RISING BOND YIELDS
Japan’s 20-year bond yield just hit its highest level since 2006.
This is triggering the unwinding of the Yen carry trade — investors who borrowed cheap yen to invest globally are now pulling out.
This is similar to the crash we saw in August 2024 due to the same carry trade pressures.
✴️WHAT’S NEXT?
Right now, both crypto and stock markets are sitting in oversold territory — and that often leads to sharp bounces.
The market seems to have priced in most of the bad news.
I expect a few more weeks of rough price action… but once that’s over:
We’re gonna win so much, we’ll be tired of winning.
