WHY IS THE MARKET DUMPING?
Bitcoin has just fallen below $66,000 while altcoins are bleeding.
1. There is no ceasefire 🔥🔥🚀
- The U.S. continues to attack Iran
- Iran continues to detain ships
- Uncertainty is only increasing
And when that happens, risk assets suffer.
2. Bond market crisis
- Japanese bond yields are reaching new highs
- U.S. long-term bond yields are skyrocketing
- The MOVE Index is rising
This is due to rising inflation expectations due to the energy crisis, and markets hate this.
3. Aggressive Fed 🤔🤔🤔
- The market now does not expect rate cuts in 2026
- The odds of a rate hike in 2026 have increased to 48.6%
- This means that the market now expects a more aggressive Fed
An aggressive Fed is bad for risk assets, as it drains liquidity from the market.
My thoughts
- I am paying attention to Trump's language here
- Yesterday he said that the stock market hasn't dropped much.
- This means he is not very worried about the stock market.
- Once his tone changes to undervalued market or BEST TIME TO BUY, a reversal could occur $BTC $ETH 🧐🧐🧐🔥.#TrumpSeeksQuickEndToIranWar #OilPricesDrop