🔴 WHY IS THE MARKET DUMPING?
Bitcoin $BTC just dropped $2,400 in an hour, while alts are in free fall as usual. Here’s why:
1. Everything is dumping
-> Stocks are dumping today
-> Precious metals are dumping
-> Only DXY is up
This is a sign that investors are exiting assets, including crypto, and moving into dollar.
2. Weak economic data
✓ US home sales fell -8.4% last month, the worst in almost 4 years.
✓ Initial jobless claims came higher than expected, which means a weak labor market.
✓ All this indicates a weakening economy, which increases the odds of recession.
3. Government shutdown
- The odds of another government shutdown this week have risen to 96%
- This is bad for the economy and markets as liquidity dries up during shutdown.
My thoughts
• The US economy is now facing some turbulence.
• This is affecting the stock market and the crypto market too.
• I think this could continue for some time until Trump announces another trade deal or some liquidity injection to boost the markets.