#MarketTurbulence Cryptocurrencies in panic: $1 billion evaporated because someone said three letters - PPI
This week something surprising happened: $1 billion was liquidated in a matter of hours. And all because the Producer Price Index of the U.S., PPI, rose a little more than expected. No, you are not mistaken. It wasn't an explosion at a mining farm, nor the ban on bitcoin in some state, nor even a tweet from Elon Musk. A number simply came out in the report, and traders lost their minds.
Bitcoin even fell below $112,000, although not long ago they told us that 'it wouldn’t drop below one hundred thousand.' Of course, they also told us that coffee wouldn’t go up in price if wages at Starbucks were increased.
And so, while bitcoin tried to remember who it is - a future asset or just a modern analog of gold, Ethereum ETFs received a sudden gift in the form of $729 million in inflows. Institutions say: 'Oh, panic? Great, we buy!'.
Why is this important? Because the cryptocurrency, once promoted as independent of the system, now reacts to macroeconomic news faster than the bond market. We live in a world where bitcoin fears inflation, and Ethereum rejoices when everyone is nervous.
And here’s the main question:
Is it the end of the romance of cryptocurrencies or the beginning of a new game?
If you ask the old bitcoiners, they will say: 'Just hodl'. If you ask traders, they will say: 'Place a stop loss and pray'. Or to speculators: 'Buy in panic and sell in euphoria, as every good speculator has done in the last 300 years.'
Meanwhile: the market is not about technology, it is not about freedom, it is not about blockchain. The market is a theater. And the tickets for the best seats are the most expensive. Especially when backstage is the PPI.
This week something surprising happened: $1 billion was liquidated in a matter of hours. And all because the Producer Price Index of the U.S., PPI, rose a little more than expected. No, you are not mistaken. It wasn't an explosion at a mining farm, nor the ban on bitcoin in some state, nor even a tweet from Elon Musk. A number simply came out in the report, and traders lost their minds.
Bitcoin even fell below $112,000, although not long ago they told us that 'it wouldn’t drop below one hundred thousand.' Of course, they also told us that coffee wouldn’t go up in price if wages at Starbucks were increased.
And so, while bitcoin tried to remember who it is - a future asset or just a modern analog of gold, Ethereum ETFs received a sudden gift in the form of $729 million in inflows. Institutions say: 'Oh, panic? Great, we buy!'.
Why is this important? Because the cryptocurrency, once promoted as independent of the system, now reacts to macroeconomic news faster than the bond market. We live in a world where bitcoin fears inflation, and Ethereum rejoices when everyone is nervous.
And here’s the main question:
Is it the end of the romance of cryptocurrencies or the beginning of a new game?
If you ask the old bitcoiners, they will say: 'Just hodl'. If you ask traders, they will say: 'Place a stop loss and pray'. Or to speculators: 'Buy in panic and sell in euphoria, as every good speculator has done in the last 300 years.'
Meanwhile: the market is not about technology, it is not about freedom, it is not about blockchain. The market is a theater. And the tickets for the best seats are the most expensive. Especially when backstage is the PPI.