The market is getting battered, and it’s not just because of one thing. It’s a double whammy, from macro factors to issues within the market itself.
It starts with expectations that the Fed will raise interest rates because U.S. inflation is proving stubborn, the USD is raging, and institutions are abandoning Bitcoin ETFs—with total outflows topping $1.88B since early November. Then there are the massive $1.64B in long liquidations, dragging prices down alongside tech stocks.
What makes things even tougher is that stablecoin supply has also shrunk by $14.2 billion. That means liquidity is drying up, and there’s very little firepower left to keep the market afloat.
$BTC is at the epicenter, but the pressure is spreading directly to $ETH, $SOL, and even $ZEC. Until liquidity returns and institutions are willing to come back in, the recovery will likely remain somewhat constrained. Keep an eye on fund flows and futures movements so you don’t make the wrong move.
It starts with expectations that the Fed will raise interest rates because U.S. inflation is proving stubborn, the USD is raging, and institutions are abandoning Bitcoin ETFs—with total outflows topping $1.88B since early November. Then there are the massive $1.64B in long liquidations, dragging prices down alongside tech stocks.
What makes things even tougher is that stablecoin supply has also shrunk by $14.2 billion. That means liquidity is drying up, and there’s very little firepower left to keep the market afloat.
$BTC is at the epicenter, but the pressure is spreading directly to $ETH, $SOL, and even $ZEC. Until liquidity returns and institutions are willing to come back in, the recovery will likely remain somewhat constrained. Keep an eye on fund flows and futures movements so you don’t make the wrong move.