🚨BITCOIN COLLAPSES BY 12% AND DRAGS OTHER CRYPTOS IN ITS FALL🚨 - EXPLANATION☝️

#BTC

After celebrating the new year with new highs of more than a year at $45,892 on Tuesday, Bitcoin corrected violently on Wednesday, marking a low at $40,500, and moving towards $42,700 this Thursday morning after a rebound.

As I write this article, $BTC is down 5.5% over one day, and more than 2% over a week. Ethereum has lost nearly 7% since yesterday, while Solana has plunged 8%, as have XRP and Cardano, and Dogecoin has collapsed by more than 10%.

To explain this plunge in Bitcoin and its peers, some observers have pointed to a report from crypto research firm Matrixport, according to which the SEC will reject proposals for a Bitcoin spot ETF, contrary to expectations that spurred the recent uptake. height of the crypto market.

Macroeconomic factors also played a role, as the higher-than-expected ISM manufacturing index and the slightly more hawkish than expected Fed Minutes pushed back rate cut expectations.

Indeed, the Fed's rate barometer shows that investors are now taking into account a 72.2% probability that the Fed will lower its rates in March, compared to more than 88% a week ago.

We must also take into account the positioning, which was strongly long, and with strong leverage before the fall, which was therefore undoubtedly exaggerated by cascading liquidations.