Crypto market plummeting due to weakened Wall Stre

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The crypto market is plummeting again, what’s the reason?

Throughout the day on March 19, the crypto market trend was very weak, and even the SOL ecosystem, which had been strong in the previous two days, fell sharply. Judging from the news, the direct reason is that the purchasing power of Wall Street ETF institutions has weakened, and there has even been a large outflow in a single day on March 18. Fidelity Group, the second-ranked ETF institution, saw an inflow of less than US$6 million, while Grayscale Fund had an outflow of US$640 million, and the entire market had an overall outflow of US$150 million.

In recent times, the rise of BTC has been driven by the FOMO sentiment of ETFs. As long as the data shows that Wall Street institutional buying decreases or even starts selling, the market will inevitably fall sharply. Because the secondary market speculates on emotions and expectations.

Although one day's data cannot fully explain anything, looking at the data from the two days before 3.18, the inflow data of Bitcoin is not optimistic. The current situation is: Wall Street has completely controlled and even manipulated the price of BTC. As long as the purchase volume is increased, the market will rise sharply. As long as the news is released to sell some, the market will plummet.

In this round of rising prices, many crypto institutions that went bankrupt in 2022 have taken advantage of the situation to sell off their chips. Projects incubated by many institutions have also launched token listing plans at a high level. Many projects that have been gradually lifted are also continuing to cash out, while Bitcoin and Ethereum The size of the derivatives market has also reached tens of billions of dollars. The interests involved are much higher than those in the Bitcoin spot market. Manipulating the price of BTC is of greater benefit to Wall Street.

There is another news that many friends in the crypto market may not pay much attention to, and that is: the Bank of Japan raised interest rates for the first time in 17 years. If the Japanese yen’s interest rate hikes form a trend, coupled with the subsequent interest rate cuts in the United States, this will be negative for the stock market and the crypto market. .

In the crypto market, the memes have hyped it up, and institutions may have finished cashing out or hedging at high prices. Will Wall Street still have the motivation to maintain the price of BTC? It depends on the FOMO sentiment of European and American investors. Two years after the Federal Reserve raised interest rates and reduced its balance sheet, global liquidity has decreased, and U.S. dollar liquidity is not as good as in 2021. The record high prices are more driven by emotions and leverage, which will be brought about by the Federal Reserve turning on the money printing press again. Until the liquidity effectively enters the market, it is not considered practical.

It's okay for BTC, but copycats and memes after the surge should be especially cautious.#slerf #ETHFI #BOME #xrp #BTC

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