TL; DR
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The crypto markets took a nosedive this weekend: BTC went from $71k to $61k, ETH went from ~$3.5k to ~$2.8k, and SOL went from ~$175 to ~$120.
Full story
We’ll start this one by quoting ourselves from early December, because it’s eerily relevant…
“You know that lady from YouTube who swims with tiger sharks and she strokes almost as if they are dogs?
If you watch enough of her videos, you’ll almost forget that these sharks are wild animals that can rip your face off…
Over the weekend, the crypto community got a similar reminder of Bitcoin’s wild/face ripping tendencies.”
ICYMI: the crypto markets took a nosedive this weekend.
Bitcoin went from $71k to $61k, Ethereum went from ~$3.5k to ~$2.8k, and Solana went from ~$175 to ~$120.
So why did all this happen?
We’ll start by reminding you that we are not financial experts…
Instead, here we do the following:
Risk our personal lives by increasing our daily screen time to levels that several therapists have called “extremely unsustainable and deeply unhealthy” – detailing the news so you don’t have to!
So with that…
Here are the three most important factors mentioned by most big brain experts:
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Inflation is not falling as expected (which is bad for risky assets like crypto)
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Such pre-halving sell-offs have happened like clockwork in every previous bull cycle
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The Bitcoin ETFs had a rough end to the week and likely sold off Bitcoin this weekend
Oh and we don’t know if this is correlation or causation, but:
The Real the market plunge started around the same time news broke that Iran had launched a drone attack on Israel, prompting hyperbolic talk about the start of World War II… it was all very “Russia/Ukraine February 2022.”
(See header image for card response).