💥 The culprit behind the market being 'bloodied' is actually the 'Bitcoin ally' appointed by Trump?
Last night, the crypto market was full of wailing. 😱 BTC, ETH, SOL and others plummeted across the board, with a general decline of over 10%. The trigger for this bloodbath points to the same person - Kevin Walsh, the newly nominated candidate for the next chairman of the Federal Reserve by Trump.
Why is the market so fearful? Because Walsh is a well-known 'hawk', known as the 'hawk among hawks'. He is famous for his aversion to monetary easing and vigilance against inflation. Once he takes office, the expected loose monetary policy and cheap funds may disappear. Liquidity will be 'sucked out', and risk assets like Bitcoin will be the first to suffer. Nearly $1 billion in ETF funds fled madly yesterday, directly triggering a chain liquidation, causing the price to plunge like a roller coaster.
But the most magical twist comes: looking back at Walsh's past remarks, his attitude towards Bitcoin is surprisingly 'friendly'. He once said that Bitcoin is a 'good policeman for policy' and believed that the U.S. should maintain its leadership in the crypto space. On one side is the potentially tightening 'hawk', and on the other side is the potential ally in crypto, creating a complete division in the market.
So, is this wave of plummet a rational preemptive hedge or an excessive panic driven by emotions? The real answer will have to wait for his Senate hearing. A true drama about the fate of the Federal Reserve’s money printing machine and cryptocurrencies has just begun. Let's chat in the comments!
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