Part 3/9:
At the heart of the market's struggles lies rising inflation and uncertainty around interest rate policies. Inflation data has been a pivotal focus for the Fed, which seeks to balance economic growth against rising prices. A notable concern is that as inflation reaccelerates, the likelihood of future rate cuts diminishes, keeping liquidity out of the market.
For the crypto market, a lack of liquidity is detrimental. Investors looking for transparency in their assets need to recognize that individual cryptocurrencies are affected by broader economic sentiments. Consequently, the empirical evidence shows that while marketing efforts for individual altcoins are undoubtedly valuable, they currently pale in comparison to macro conditions.