Why Is Crypto Down Today, why all this red and why did the crypto markets pump yesterday only to dump so spectacularly. Ouch, it’s a bloodbath out there today folks and it hurts that little bit more after the little pump we saw yesterday.

Reasons Why Is Crypto Down Today

Okay well, the green candles yesterday were a result of the federal reserve raising interest rates yeah true story. Now Jerome Powell and his buddies raised rates by 50 basis points the biggest raise for over 20 years. But the thing is that was what the markets were broadly expecting markets love being proved right. And they celebrated yesterday by going shopping. Now Jerome also teased us by effectively ruling out a 75-bips hike in June. Which further added to the warm and fuzzy feeling.

The problem is reality then kicked in interest rates have further to climb. The huge debts that everyone from the u.s government down have racked up are going to become harder to service. Prices are going up supply chains are still a mess and Russia is still in Ukraine these are not ideal market conditions.

Few Other Factors that Why Is Crypto Down Today:

Now there are a few other factors that Why Is Crypto Down Today. I think maybe weighing on the markets too as if that weren’t enough eh.

Now the first is the fact that u.s treasury yields are rising to their highest levels in four years. Now this points to investors selling off risk-on
assets like stocks and crypto to move into less risky. Ones like long-term bonds then there are also fears about the housing market in the u.s. Which as many of my American friends have been telling me is going absolute gangbusters at the moment. Well, the fear there is that as rising interest rates make mortgages more expensive, Well people stop buying houses.

Market Sentiment Today:

As my American friends also say you do the math now the rising rates are also fueling fears of a recession. And to be fair to Jerome and the rest of the team fed I don’t envy their job here they have to tame inflation. While also trying not to tank the economy it’s a bit like being a one-legged man at an ass-kicking contest as the experts say. Now the bank of England is also saying that a recession is imminent. And I’m sure many other central banks are thinking the same thing. Recession-based yips are also being made worse by a higher number of jobless

Claims in the u.s last month than was expected which suggests that the bounce back from the pandemic is not going as smoothly. As anyone would like and to cap it all off the dip that all of the above factors caused also meant a whole load of bitcoin long positions got liquidated. Yesterday too only exacerbates the sell-off because that’s what happens.

Conclusion:

When you trade with leverage so that’s why all our net worths are down today folks. I know it hurts but this is crypto and diamond hands are only forged in the heat of hardship or you know something like that. I hope you will get the hard realities that Why Is Crypto Down Today. Hope soon market recover, and we also recover our losses due to it. Learn more here How Much Does a Digital Marketer Make?