U're not the only one and this is the hardest part of crypto
Many factors are affecting the market
I spent 20+ hours analyzing: here are reasons for such correction and when it will end🧵👇
1/➮ Jump unwinding positions
Most likely, this is one of the main reasons why the market is falling:
The brokerage firm Jump Trading is liquidating its portfolio
~$400m ETH in the past 2 weeks from 1 wallet
2/➮ Trump presidency odds decreasing
Politics is heavily intertwined with and influences crypto
Lately, the chances of Trump becoming president are decreasing, causing some investors to start selling off their assets
They fear less favorable policies from other candidates
3/➮ Recession fears
Another strong factor is the specter of a recession in the U.S. (and globally)
Which is looming large, and economic indicators are flashing warning signs
Currently, risk assets like crypto are suffering cause investors are seeking safer investments
4/➮ Yen unwind
Recently, the Bank of Japan raised interest rates from 0% to 0.25%, and this is the first increase in years
Many investors had borrowed yen practically for free to finance investments
Now, this has created broader instability in financial markets
5/➮ Geopolitical tensions
Rising geopolitical tensions in the Middle East and the ongoing war in Gaza are adding uncertainty to the market
These conflicts increase global risk aversion
Investors want safer investments and are exiting from crypto
6/➮ Stock market correction
Aug 1-2: The stock market experienced a correction due to the U.S. report showing the addition of 114,000 jobs last month
Which was below expectations, and an increase in the unemployment rate
Ofc, such a correction has now also impacted the crypto
7/➮ Gox distributions
After 10 years, Mt. Gox is finally starting payouts, and this adds additional pressure
Former Mt. Gox creditors are beginning to receive their payouts, and some are deciding to sell
8/➮ Recent pump trapped fresh longs
The recent pump gave a lot of hope for further growth, especially to new market players
Therefore, their long positions have now been liquidated, which has further strengthened the downward momentum
9/➮ Alts dispersion
Phenomenon of alts dispersion poses a serious challenge to the stability and performance of the crypto
The explosive growth in the num of tokens requires strategic responses to ensure sustainable market dynamics
But, such solutions are not yet available
10/➮ The reason why crypto traders are rewarded so much: it's that we go through times like these
To win the game, you have to stay in the game—it's that simple
This 30% correction is normal and has happened in every bull run
The market starts going back up by the end of Aug or early Sep
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