Crypto Markets React To Economic Times
It's that time again where the Cryptocurrency numbers go read (despite them being higher than previous years) that cause wide spread fear and doubt as shown on coinmarketcap the current sentiment is fear. So while everyone is feeling the pinch for cheap Hive it's probably a good time to stock up on some (not financial advice).
Bitcoin slipped about 3.27% in 24 hours and is about 18% off its recent high. Ethereum and XRP also posted drops of 6.1% respectively in the same time window.
But Central Banks Investing?
Many are asking how and why given the latest news that central banks have invested around USD 37 Billion in to cryptocurrency so the fact we are in the middle of a fear cycle makes little sense to many. The boost in investment should potentially support liquidity of the market and strengthen the sector but there are quite a lot of other financial stressors and factors to consider at play.
Most recently people have become concerned with the Tariff war at play which is likely to reduce disposable income for many and see people with hold spending in preparation for cost increases that the tariffs could potentially bring in.
Interest Rates Remain Top Concern For House Holds
While the U.S Interest Rates were cut last week there is growing concern that it was a bad move which potentially could mean future pauses or increases. Fed Governor Stephen Miran and Federal Reserve Bank of Kansas City President Jeffrey Schmid voted against the cuts with key comments around inflation remaining high. People are concerned that this could potentially signal a future increase and are preparing now and moving out of risk assets.
Crypto Market Still At 3.46 Trillion
Despite the fear, the total market cap remains at USD 3.46 Trillion and continues to grow year on year. What we are seeing emerge is smaller altcoins and newer projects pick up some of the new capital and as some fall and others rise, the market will remain choppy.
Crypto is still effectively an investors gamble sector with new projects starting up daily, each one offering something new. We are only just starting to see the sector come to light and deliver real world tangible opportunities.
Stress Less and Don't Gamble more than you can afford to lose.
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Posted Using INLEO