WHY ARE BITCOIN AND CRYPTO DUMPING?
BTC AND ALTS HAVE ERASED NEARLY $200B IN THE LAST 24 HOURS.
HERE ARE THE 2 BIGGEST REASONS BEHIND THE DUMP.
1) TARIFF WARS
THE US IS IMPOSING TARIFFS ON SEVERAL COUNTRIES, INCLUDING CANADA, MEXICO, AND CHINA.
NOT ONLY THAT, IT'S ALSO PLANNING TO IMPOSE TARIFFS ON EU AND BRICS NATIONS.
TARIFFS RESULT IN HIGH INFLATION AND A STRONG DOLLAR.
BOTH THESE THINGS ARE BEARISH FOR RISK-ON ASSETS AS THE FED WILL TIGHTEN THE ECONOMY MORE TO STOP THE RISING INFLATION.
THIS IS WHY THE MARKET PARTICIPANTS ARE SELLING AS THEY THINK THIS TARIFF WAR COULD GET WORSE.
2) MASSIVE LIQUIDATIONS
IN THE PAST 24 HOURS, NEARLY $1.8B WORTH OF LONGS HAVE BEEN LIQUIDATED.
RETAIL IS TRYING TO LONG AT EVERY BOTTOM WITH HIGH LEVERAGE AND JUST GETTING REKT.
I HAVE ALWAYS ADVISED AVOIDING LEVERAGE AS IT'LL MOST LIKELY REKT YOU.