TBW Free #5: Fear on the crypto markets
Read all about it in The Big Whale's fifth free newsletter.
11 May 2022
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THE BIG NEWS
This week's news 🧠
👉Bitcoin takes a big hit
Unless you haven't been on the internet for a few days, you must have seen that the crypto markets have plunged. Since Monday, they have lost more than 15% and bitcoin is trading just above $30,000. Don't look for any particular reason for this plunge: it's due to the general context. First and foremost, the decision by central banks, especially the US Federal Reserve (Fed), to gradually raise interest rates to combat inflation. No risky asset will escape the downturn in 2022! Investors' eyes are now firmly fixed on what comes next: if the dollar falls sharply below $30,000, a large number of automatic sell orders could be triggered, which could exacerbate the current slide. According to most analysts, the scenario of bitcoin falling to $25,000 or even $20,000 (the former all-time high in 2017) would not be surprising. While we wait to see what happens in the coming weeks, let's not forget that bitcoin remains the best-performing asset for ten years.
👉 Coinbase loses momentum