WHY IS BITCOIN DROPPING?
Today, Bitcoin dipped below $61,000, resulting in over $260 million in long liquidations. 💸
Here's why BTC experienced a decline:
1) Unemployment Rate Surge 📈
- Yesterday, the US unemployment rate reached 4.3%, surpassing expectations. 🇺🇸
- High unemployment levels suggest a potential economic downturn, leading to a crash in both the stock market and crypto assets. 📉💼
2) Strengthening Japanese Yen 💴
- The Bank of Japan (BOJ) raised interest rates for the first time in 17 years. 🏦
- Investors are withdrawing funds from US equities and other high-risk assets due to the increased cost of borrowing Yen post-rate hike. 📈💸
3) WWIII Concerns 🌍
- The fear of World War III has emerged for the fifth time in 2024. 🕊️🌐
- During times of uncertainty, investors tend to avoid holding risk-on assets, contributing to the market decline. 📉💣
4) Mt. Gox and Genesis Distribution 🔄
- As Mt. Gox's Bitcoin distribution nears completion, the Genesis distribution has initiated. ⛏️
- Recently, over $1 billion worth of BTC was transferred by Genesis, triggering market anticipation of a forthcoming downturn. 💰📉
In my opinion, these occurrences are likely to prompt swift action from the Federal Reserve, potentially leading to rate cuts. 🏦💸
Once the apprehension subsides, the market is anticipated to recover, initiating a new parabolic run. 🔥
Remember, markets have a way of processing everything within a brief 3-month timeframe. 📅💼
#bitcoin☀️ #BTC☀ #US_Job_Market_Slowdown #July_NonFarmPayrolls_Shock #MtGoxJulyRepayments $BTC