King crypto currency The unit fell below 86 thousand dollars with Trump’s statements while the unit was prepared. Nowadays, we hear this sentence very much because Trump is doing his best to upset the trade balances on a global scale. Why are crypto currencies so willing to be the biggest loss of this trade war?
Crypto Coins and Trade War
The Kobeissi Letter Today crypto- It goes down to the basis of the decline in money. The US is aggressively discussing additional customs data with all other trade partners of the EU, China, Mexico, Canada and the UK. Trump is stubborn.
The trade war that began on January 20 deleted approximately $ 800 billion from the crypto currency markets. Bitcoin for more than 10 years $86,724.40 While it was seen as a hedge against uncertainty, things have changed today. Let’s open a little parenthesis, as the story appears to be based on the inflation increased, BTC increase was not expected, there was no BTC increase during the COVID period and did not. Today, BTC increase is expected and does not happen in the midst of uncertainty.
On a single screen instant prices, important data, news, latest developments, comments and discussions at Chat! Come right away from your eyes!
In the period of 2015-2023 BTC He performed similarly with gold. That’s why the digital gold discourse wasn’t that much exaggeration. But if we look at the last period, things have changed especially since last year.
Crypto Summit with Trump
Trump’s start because of the steps he will take on crypto currencies and more, brought the short -term summit. In five weeks, crypto currency markets fell from $ 3.7 trillion to $ 2.8 trillion. Moreover, all of this was finished with Secute crypto cases and the first and only crypto -friendly US President of the US was in the chair.
What has changed in crypto coins?
The correlation of the crypton with risk assets increased. As can be seen below, we had a price graph that moves in harmony with the NASDAQ100 since the date of Bitcoin 2023. In 2024, the correlation coefficient reached up to 0.88.
The correlation is broken. So what else has changed? TKL wrote;
“In addition, markets pricing decreasing liquidity. As we have learned since 2020, the crypto is weakening when liquidity decreases. The best example of this was the crypto “Flash Crash” on February 1st. The sudden decrease in liquidity resulted in a decrease of $ -760 billion in 60 hours.
Where does this liquidity go? Ironically, most of them flow back to the US dollar. Since the US dollar is the most “stable” currency, it becomes “safest risky asset” during trade wars. This explains why USD has reached its strongest level since 2003 against CAD this month. ”
Trump Coin and Results
Crypto currencies were flooded with individual investors. On the next 6-7 November, we saw an ETF net entry of approximately 2 billion dollars on November 6-7. After the election, the huge number of individual investors flocked to the markets under the influence of Trump Coin. Abnormal rise in the Solana network, climbing wage income and much more.
Solana Frauds in the network missed some of the investors. However, when we look at the big picture, individual investors coming with Trump aim to gain much more timid and much faster. This shows that they are more timid. Imagine investors who believe that everything is over with a 3 -day drop in addition to investors who have been holding a hold for 3 years in the same game.
The timid herd means that they will try to jump quickly to the train when things are reversed while the trade war and other reasons are rapidly escaping. 5 thousand dollars in the minutes of today’s reality, the rise of 5-10 thousand dollars will probably be the truth of tomorrow.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
