Same as always - the poor trader panic selling to the rich investor & traders manipulating leverage as well as risk managment liquidations.
The new piece of data to track is how #Bitcoin#ETF investors behave.
Why are markets crashing?
🇯🇵 Japan's stock market suffers its worst loss since 1987, reversing the 0% interest carry trade, prompting a mass sell-off of assets. Additionally, Japan is deploying more US troops and increasing defense construction to defend Taiwan as a US proxy.
🇨🇳 China is testing free markets by allowing banks to fail with less intervention, aiming for market corrections instead of intervention. They're supporting Iran & Russia's oil industries despite sanctions & are testing Taiwan reunification as the US tries to block Taiwan from sending semiconductor microchips to China, escalating the trade war. This could be a covert economic strategy by China to test the US banking system, possibly leading to a US credit crisis.
🇺🇸 The USA didn't reduce rates last week, and unemployment was worse than expected. An emergency rate cut may be in the works, but its effectiveness could be short-lived. The US is escalating tensions by sending advanced weapons to Ukraine and deploying missiles in Germany, violating agreements and reviving Cold War dynamics.
🇮🇷🇮🇱 Iran is likely to retaliate against Israel more severely than the April attacks on four fronts: Iran, Lebanon, Yemen, and Iraq. Potential targets include critical infrastructure, impacting global cybersecurity firms as seen with CrowdStrike.
What I’m looking for:
- Will China allow markets to correct?
- Will the US implement an emergency intervention?
- Will #Bitcoin follow commodity trends and its four-year cycle alongside rising Gold & Oil prices?
- Will Saudi Arabia side with Russia & Iran, weakening the US with higher oil prices?
- Will the Abraham Alliance (Jordan, UAE, Saudi Arabia, Egypt & Bahrain etc) defend Israel from Iran?
- How will #Bitcoin ETF investors manage their risks during a large correction?
- Will crypto decouple from #Bitcoin and follow the stock market?
I’ll keep you updated every step of the way.
It seems unintuitive that a small 25 basis point interest rate hike in Japan would spike all risk assets, including tonight's -20% $ETH candle.
But you need to understand the way the carry trade works:
It's a leveraged unwinding.
I’ve been approached by all the largest exchanges and brokers with large deals to start promoting them
I’ve turned them all down
Why?
The format is no different to these influencers promoting gambling, it’s fake play money they give to these gurus to show you these ‘large trades’ but it’s not real money
That’s why so many of these guys have terrible accuracy because they are not legit, they have no clue what they are doing, they are just being paid to fool you
My 92 year old grandmother is more talented than most of these guys
JUST IN: 🇺🇸 Donald Trump says "I will ensure that the future of crypto and #Bitcoin will be made in the USA…I will support the right to self custody to the nations 50 million crypto holders."
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