π¨ The crypto market IS COLLAPSING! π¨
The cryptocurrency market has just suffered a brutal SHOCK, billions of dollars have evaporated in a few hours.
Traditional markets are also affected by panic.
What is really happening?
First, let's take a look at the alarming numbers:
πΈ 400 billion capitalization gone
πΈ More than a billion dollars in positions liquidated in a few hours, including 901 million long positions pulverized.
πΈ Bitcoin fell by 20%, Ethereum by 34%, and altcoins were not spared: Solana fell by 24%, XRP by almost 21%, memecoins like DOGE and SHIB fell by 25%. 29%.
But that's just the tip of the iceberg.
The reasons for this debacle are multiple and interconnected:
π₯ The Japanese "carry trade" is collapsing: The yen has soared by 10% in just 3 weeks, pushing investors to massively sell their assets to repay their debts in yen.
This situation was exacerbated by the decision of the Bank of Japan to raise its rates to 0.25%, the highest level since 2008.
π₯ Traditional markets in panic: The Nikkei collapsed 12.4%, its biggest historical fall since βBlack Mondayβ in 1987.
This shock wave spread to the American markets, with Nasdaq futures falling by 6% and those of the S&P 500 by 3%.
π₯ Massive sales from major players: Jump Trading liquidated $300 million worth of Ethereum in 10 days.
Additionally, two other major players contributed to the selling pressure: the distribution of Mt. Gox's Bitcoins to creditors ($9 billion worth) and the sale of BTC by the German government.
π₯ A tense global context: The assassination of the Hamas leader by Israel has exacerbated tensions in the Middle East, Western countries are asking their nationals to leave Lebanon...
This geopolitical instability, coupled with political uncertainties in the United States and fears of recession, has created a climate of risk aversion.
This perfect storm shows how vulnerable the crypto market remains to external shocks.
It also highlights the growing interconnection between cryptocurrencies and traditional financial markets.
Stay vigilant, this extreme volatility could well continue in the days to come!
The cryptocurrency market has just suffered a brutal SHOCK, billions of dollars have evaporated in a few hours.
Traditional markets are also affected by panic.
What is really happening?
First, let's take a look at the alarming numbers:
πΈ 400 billion capitalization gone
πΈ More than a billion dollars in positions liquidated in a few hours, including 901 million long positions pulverized.
πΈ Bitcoin fell by 20%, Ethereum by 34%, and altcoins were not spared: Solana fell by 24%, XRP by almost 21%, memecoins like DOGE and SHIB fell by 25%. 29%.
But that's just the tip of the iceberg.
The reasons for this debacle are multiple and interconnected:
π₯ The Japanese "carry trade" is collapsing: The yen has soared by 10% in just 3 weeks, pushing investors to massively sell their assets to repay their debts in yen.
This situation was exacerbated by the decision of the Bank of Japan to raise its rates to 0.25%, the highest level since 2008.
π₯ Traditional markets in panic: The Nikkei collapsed 12.4%, its biggest historical fall since βBlack Mondayβ in 1987.
This shock wave spread to the American markets, with Nasdaq futures falling by 6% and those of the S&P 500 by 3%.
π₯ Massive sales from major players: Jump Trading liquidated $300 million worth of Ethereum in 10 days.
Additionally, two other major players contributed to the selling pressure: the distribution of Mt. Gox's Bitcoins to creditors ($9 billion worth) and the sale of BTC by the German government.
π₯ A tense global context: The assassination of the Hamas leader by Israel has exacerbated tensions in the Middle East, Western countries are asking their nationals to leave Lebanon...
This geopolitical instability, coupled with political uncertainties in the United States and fears of recession, has created a climate of risk aversion.
This perfect storm shows how vulnerable the crypto market remains to external shocks.
It also highlights the growing interconnection between cryptocurrencies and traditional financial markets.
Stay vigilant, this extreme volatility could well continue in the days to come!
1 month ago
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