🔴 Iran prepares a possible attack on Israel on Monday. That's because of the assassinations of Fuad Shukr and Ismail Haniyeh (data from Axios)
🔴 UK has anti-immigrants protests. They were caused by the stabbing attack in northwest England by illegal immigrant from Wales.
The country divides into 2 parts; Elon commented, 'Civil War is inevitable'
🔴 US money supply breaks ATH. That means inflation is coming soon.
🔴 Trump thinks of paying off $35T country debt with Bitcoin. No one knows what will happen with that money. They may be sold right away!
🔴 Robert Kiyosaki is bearish about stock market, but keeps buying
🔴 US unemployment rate was released. People expected 4.1% level, but it was raised to 4.3%. Crypto showed red candles.
🔴 Analysts expect the growth in price of precious metals. JPMorgan predicts $36 per silver ounce (now it's $28.5).
That will be caused by higher demand. There are high chances that dollar inflation will appear, and people will start buying precious metals.
🔴 Warren Buffet's company Berkshire Hathaway holds $277B in cash, that's a record.
Only during Q2 did they sell stocks for $75.5 billion. And they don't stop.
Across 12 consecutive days, Warren sold shares for $769 million.
The reason for accumulating cash is clear: the company sees a risk in the market
What does it all mean for the market?
Nothing is going to improve. Wars happen. People and firms are selling. The US prints more money.
But we've already seen this uncertainty a few times
🔸 Covid-19 was declared a pandemic
That happened on 11th of March 2020. A day later, the price of Bitcoin crashed by -40%
The price went from $8,000 to $4,800.
The whole crypto market lost 39%, too.
🔸 Russia-Ukraine war
The price of Bitcoin didn't drop right away. But February 24, 2022 (the day when the war began) was a catalyst for the hardest crypto winter.
In 4 months after the beginning, the price dropped by 44% (from $37,200 to $21,200). And it took another 1.5 years to get back to $37k level
Conclusion
When uncertain things happen, people sell all their high-risk assets.
Stocks, crypto, everything! And they move money to some savings, like gold, properties or just stack the cash.
That creates an outflow in our Web3 market, so we go that deep.
We might not see any drastic changes during August yet. But believe me, if it's going to continue like this, in long term we might get to the crypto winter like it was during 2020 or 2022-2023.
