Bitcoin and Altcoins Dump.
Bitcoin fell around 12% over the last few days and is now sitting around 20% below it's ATH. Altcoins also dumped with Ethereum and Solana taking the biggest hit. But why the dump?
There are two events playing out right now that I think you should be aware of, as they are dominating all others in my opinion.
Trumps Trade Wars.
President Trump is still insisting on placing tariffs on just about every other country in the world. I personally don't know whether this is a good or bad idea for the US, but one thing is for certain, the US Stock Markets do not like it! US stocks have all been falling over the last few weeks, TSLA is down around 40%, GOOG around 10%, MSFT around 10%, AMZN around 10%, the list goes on. Bitcoin and Ethereum also trade on these markets now through the ETF's. The Bitcoin ETF's have seen 7 straight days of net outflows, and I don't really see them recovering until these Stock Markets regain some confidence.
Exchanges Selling Altcoins.
The Bybit exploit happened on Friday and the markets held up well over the weekend considering the news. We know now that Strategy were busy buying $2B worth of Bitcoin, as soon as they stopped Bitcoin took a down turn on Monday. At the same time exchanges like Binance, Kraken and Bybit started to send a lot of Ethereum and Solana to Wintermute Market Maker to sell. I'm not accusing the exchanges of anything untoward, but it's seems very curious to me that after the market flush happened there were around $1.5B worth of liquidations with arout $500m of that on Bybit. Then immediately after the dump Bybit started to repay their Ethereum that they borrowed after the hack to pay their customer withdrawals! Coincidence?
Final Thoughts.
Short-term I would expect there to be some more volatility, as Trump and the Exchanges continue to play their games. Longer-term I think we will see some confidence return to Stock Markets and Bitcoin which will flow into Altcoins, giving us some much needed green candles.
These are my own opinions and should in no way be considered financial advice.
Always DYOR.
