Hello everyone, future subscribers (you have no choice but to come in and do it)!
You all dream about the independence of crypto and how the crypto industry gains autonomy and does not depend on the rest of the financial sector. Unfortunately, any investment-type assets depend on the general macroeconomic component and consumer sentiment.
Take a close look at the comparison of the behavior of the chart of everyone's favorite $BTC with the famous and well-known S&P500 index:
Of course, it becomes obvious to you that only the Beta (read: "Volatility") is different, but the nature of the movement is identical.
A natural question arises: "Why?" The answer is banal and simple - investment assets attract investors during periods of calm and expectation of economic growth.
The result is that Bitcoin is dependent on the sentiments of investors in developed countries, since the generation of the main cash flow directly or indirectly comes from there.
And what does the current situation have to do with it? Here we will get even more interesting coincidences.
The market growth in the last cycle was caused by the fact that the US banking sector showed much better dynamics than expected in principle. Everyone was expecting a crisis in the financial sector and was shouting at every corner: "The dollar is finished, the Fed is idiots, and I'm in shorts up to my tonsils."
Just look, banks used to generate losses, but now they are exceeding the expectations of investors and analysts!
Investors realized that everything was fine with the economy at the moment and voila - they took their money to where there was an opportunity to make money!
Cryptocurrency is an investment asset, so the inflow and outflow of capital will always coincide with global sentiment.
Learn macroeconomics, gentlemen! Stop drawing lines on the charts (it hurts me as much as it hurts your deposit).
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