WHY IS THE MARKET DUMPING?

Bitcoin 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.