Hello!
The markets are taking a hit again. Today has been a big red day for Wall Street and this translated to more selling pressure to the cryptocurrency world, specially for the majority of altcoins.
What is the cause? Well, I'm not sure about what is the cause but I do think that Trump tariffs are not helping the market at all. He's pushing for protectionism and to put higher tariffs to Mexico, Canada, China and Europe and the markets doesn't like it.
In addition to that, I think he's doing it on purpose to press the Federal Reserve and Jerome Powell to cut interest rates. Why? Because there are more than 9 trillion in debt that need to be refinanced this 2025. And the interest rates are very very high right now.
Take a look at the red in this photo:
Who will win this battle? Jerome or Trump? Hmmmm hard to tell but we all need this correction to stop soon or Bitcoin and the other alts will bleed to really low levels again. Well, at the end of the day we will be able to buy Bitcoin cheap again if this happens, so not the worst possible scenario.
Take a look at the Tesla chart, it corrected more than 50% in less than a week. That's crazy!
And with that, 50% of it's market capitalization is gone:
Tesla's current market capitalization is less than 0,7 trillion dollars, a very sharp decrease from the highs close to 1.5 trillion. All the US stocks are overvalued, we all know that. The problem is that it's one of the few places where people are investing, and a lot of capital is constantly moving there. Of course, if we talk about the traditional system instruments. US stocks and bonds are the places where the money is flowing, so when there is a correction, it hits really hard.
Well, I'm following this situation very closely.
Stay safe out there!
Posted Using INLEO
Every time we think it's over, another wave of red hits. If Bitcoin dips too much, they experienced ones will just have to accidentally buy more. Gotta love a discount, right lol
I stick to my idea, we're still going to see BTC visiting the low 70s, right in the golden zone retraction of the whole upwards movement. From there... let's see! :)