cryptocurrency We have been experiencing a sharp decline in the markets for the last hour and BTC has deleted thousands of dollars. For altcoins, this was even worse because the losses were even more painful as a result of not being able to recover sufficiently on the rise. So what’s going on?
Why Are Cryptocurrencies Falling?
We were talking about the risk of a decline ahead of the Fed minutes on Wednesday. But this happened very suddenly. Powell did not say good things at the last Fed meeting. That’s why it’s not hard to guess that not many good things were written in the minutes. Although Trump will take office on January 20, today’s data caused the crypto to melt together with the US stock market.
JOLTS data It was much above expectation. ISM PMI data also reflects the growth in the economy. So employment is strong and the economy is growing. So what does this mean? If the Fed does not see a serious decrease in inflation, it may be satisfied with reducing interest rates by a total of 50bp in a maximum of 2 meetings this year.
For risk markets, it is not good for interest rates to be lowered much more slowly. Long positions worth $331 million were liquidated in the last 24 hours. While a total of 131,979 investors were liquidated ETH price It dropped below $3,500 again.
When will the decline end?
The decline was caused by US data, and at the time of writing, Trump’s good news of a $20 billion data center investment was not enough to support the markets. trump Starting to work now crypto coins He should start putting pressure on his cabinet to take steps to support it.
Turkish on-chain analyst anlcnc1 wrote the following in his assessment of the recent decline;
“First of all, Bitcoin
$101,782.3 There is nothing special about our decline. After the markets opened, the USA opened with sellers and as usual, we started to fall together, that is, a decline originating from the USA. If that side gets better, we will recover quickly on our side too. Yesterday, when the markets opened with volume, Nasdaq left a gap, and there is another one below. It may receive an upward reaction from these regions again, perhaps after the price gaps are closed.
As for the metrics on our side, Binance was already in a seller position and remains there. I often state that we need to see an image with buyers on the Binance side. On the Coinbase side, there was a sale along with the decline, but not enough to recover. Binance funding remains at 0.0064 instead of 0.0100, lower is better for us.”
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
