If prices keep dropping as quickly as they have in the crypto market over the past few days, the coin you’ve been eyeing might start to look like a great deal this day will be the best to get started. Wall Street experts, on the other hand, have a rule of thumb for situations like this: “Never try to catch a falling knife.”
If you use your imagination, you should be able to see that “catching a falling knife” or “buying the dip” is almost always a bad idea. This strategy is also called “catching a falling knife.” Even so, this doesn’t mean that smart traders can’t make a lot of money by trading on more volatile markets.
But that doesn’t mean that smart traders can’t make a lot of money by trading on more volatile markets. But the most important thing to take away from this is that big market changes that happen quickly might scare the average investor.
Thursday, the price of one Bitcoin (BTC) dropped to a new all-time low of $20,755. Wednesday, Jerome Powell, the president of the US Federal Reserve, told investors that the central bank would keep its current “hawkish” position on money.
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This caused the price to rise very close to $23,000. After the interest rates were raised by 75 basis points by the Federal Reserve, he held a press conference to talk about it.
In the same way, SOL and DOGE, which gained up to 16% during the surge, went back to where they were before Powell. During the rush, the value of both of these cryptocurrencies went up by up to 16 percent.
After the last Fed meeting in May, the same thing happened. When Powell talked about the rate hike at the press conference after the meeting, both stocks and cryptocurrencies went up. I saw how things were really going the next day.
The price of bitcoin was dangerously close to going over $20,000 in the last 24 hours. Because of this, a lot of people might want to sell their bitcoin. But Haohan Xu, CEO of Epiphany, says it’s unlikely that this mark is the bottom because sentiment is bad and liquidity is going down.
In a note, he said, “The yield on the crypto market will go down because interest rates are going up.” Everyone who works in the cryptocurrency market has had to borrow money, whether they are traders trying to make money from contango or market makers trying to arbitrage between exchanges.
When a good’s price in the future is higher than its price now, this is called “contango.” Xu told me, “Because of recent changes to the cryptocurrency market, the contango and spread have gotten worse.
Institutions are less likely to use these methods because of this, which means they need less money to do their work.” When you look at all of these reasons together, you can see that they will force high-yield providers to cut their interest rates by a lot.
“Capping” is the term for when a lot of money is quickly sold off in a market or investment that is going down. This shows that investors don’t trust the market or invest in general.
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Why does Crypto Lender exist?
Celsius got so popular: As time went on, Celsius’s ways of making money became more sneaky. The company moved customer money around using decentralized lending protocols and aggregators to get the best return possible.
After the accounts were frozen, Texas and other states started to look into the Celsius Network: The Texas State Securities Board (TSSB) has paid a lot of attention to the lending platform since October of last year.
Finblox has put a limit of $1,500 in the middle of the three arrows on how much you can take out each month. If you don’t know how money works, The company said it would look into how Three Arrow Capital could affect the company’s cash flow.
The US Treasury Secretary talks to the heads of the biggest banks about cryptocurrencies. BitRiver will build data centers with energy from Gazprom, a company that makes oil and is run by the government.
