🥀WHY IS THE CRYPT FALLING??
Bitcoin has dropped below $66,000, and altcoins are in deep trouble.
One very well-known influencer shares his thoughts on this matter:
1. Geopolitics and lack of ceasefire
🔸The USA continues attacks on Iran
🔸Iran is blocking ships in its waters
🔸Uncertainty is only increasing
In such times, investors flee from risky assets - crypto suffers first.
2. Problems in the bond market
🔸Yields on Japanese bonds are reaching new highs
🔸Long-term rates in the USA are also rising
🔸The MOVE index (bond volatility) is moving up
The reason is the expectation of higher inflation due to the energy crisis. Markets do not like this.
3. Tight monetary policy of the Fed
🔸Investors no longer expect rate cuts in 2026
🔸The likelihood of a new hike has already risen to ~48.6%
🔸This is a signal: the Fed may act even more aggressively
And a "hawkish" Fed = less liquidity and pressure on the crypto market.
Main point:
Watch Trump’s rhetoric. Yesterday he said the stock market "has not fallen significantly yet."
This means he is not worried for now.
As soon as he starts talking about an "undervalued market" or "the best time to buy" - then we can expect a turnaround. 🚀