Why is Crypto Market Down Today
In the time of cooling inflation in the cryptocurrency market Bitcoin and Altcoins have fallen with the U.S stocks. Why are Bitcoin and other cryptocurrencies facing major downfall after being in the highs for one month?
This happened after crypto benefitted from the CPI Consumer Price Index numbers but soon in November, it showed major inflation slowing than expected.
Nevertheless, this resulted in falling share prices. Although there is nothing to worry about for the investors because this type of situation has occurred before.
However, apart from this situation, there are plenty of other situations already there for cryptocurrencies to worry about.
U.S Stocks Down Post-CPI and FOMC:
It is quite astonishing to know that the U.S. inflation is falling faster than expected and despite the FTX and the stock performance Bitcoin still retains its position despite macro volatility.
However, the following day had the FOMC (Federal Open Market Committee) concluding a hike in the interest rate of a 50-basis-point. If this is compared to the previous ones this was lowered than theirs and quite predictable.
If we talk about BTC/USD it has fallen to $17,500 which was increased at a high level in the previous month up to $18,400. ETH/USD fall 5% on the prior day.
Nevertheless, the senior commodity strategist Mike Mcglone had to say a lot about this situation since he is triggered by the situation.
“Some 1929-Like Forces at Work in 2022 – The 2021 pump in US liquidity can be compared with the stock-market bubble of 1929, with implications for similar outcomes,”
US Dollars Bounces from 6 Months Lows
Keeping in view the take of the US Dollar in the down times of crypto the US dollar is now making up to come through it. This is because they are at their lowest since the June of this year and now, they are trying to pull it towards how it was before.
DXY is trying its best to pull it to 105 when it is 103.5.
The dollar now needs a lot in these times and nobody bothers to talk about it. However, Jerome Powell the analyst, trader, and the host has to say a lot about it and he seemed quite concerned when he said
“First wave down (prob A of 4) looks potentially completed here. We could be in for a fairly lengthy sideways consolidation through most of 2023, much like 2015, before ultimately ripping higher to complete the count.”
Binance Fields Ongoing FTX “FUD”
The Ceo of the market Changpeng Zhao has continued to find help for the market through FUD. However, despite all of the things going on many traders are more likely to withdraw their billions of dollars. This is quite astonishing that this is done just in the past week.
The Ceo of himself told in an interview about the investors and their free hand in their investments. People who don’t know about Binance are now aware that they can withdraw all of their money whenever they want.