The prices of cryptocurrencies suffered from a large diving this week, which cost the investors billions of dollars. Bitcoin decreased to less than $ 80,000, while the total market value of all these coins decreased by 5.40 % to $ 2.64 trillion. This means that encryption investors have lost nearly a trillion dollars in the past few months.
Why did Yaski, Solana, Shaiba Eno, Bibi, and Altcoins be destroyed
Most altcoins suffered a great reflection this week. Jasmy price decreased to $ 0.0170, its lowest level since November 5 and 72 % lower than the highest level in November last year.
Likewise, the Solana price decreased to $ 127, a decrease of approximately $ 300 a few months ago. The SHIBA Inu price fell to $ 0.00001337, fell sharply from 0.00003326 dollars, while the PEPE currency fell to $ 0.0000075.
There are three main reasons that make Bitcoin and Altcoin these have decreased: an index of fear, greed, technology, Donald Trump’s tariff and its effect on inflation.
Fear and greed index decreased
The first main reason for novice retreats such as Jasmy, Solana, Shiba Inu and Pepe is that investors have become more fearful in the market today.
A look at the CBOE S & P 500, known as Vix, shows that it jumped in the past seven consecutive days and has stayed over $ 20. The high VIX index is usually a sign that the market is more volatile.
The CNN Money Fear and Greed index moved to the 18 -year -old extremist area. This decrease occurred as many sub -factors decreased to the maximum levels.
For example, market momentum, stock price strength, status and call options, and safe haven are moved to the extreme fear area. Other sub -parts such as demand for unwanted bonds and market fluctuations have moved to the fear area. The fear and greed index also continued to decrease this month.
Encryption prices are disrupted when investors are afraid because it increases the sale of panic and low demand, while investors remain on side lines.
Bitcoin double price
Altcoin prices were disrupted after bitcoin formed a dual pattern at $ 10,200. As shown below, this double part had the neckline at $ 89,100, as the coin crashed below this week. Bitcoin has also decreased less than 200 days moving average.
Therefore, there are possibilities for the BTC price to be suspended to $ 73,614, which is the highest level in March last year. This collapse will be upward because it will indicate that it has formed a lounge and re -testing pattern, which is a common reflection sign. Most altcoins disrupt whenever Bitcoin does not wear well, as happens today.
Donald Trump’s tariff and federal reserve
Altcoins prices such as Shiba Inu, Pepe, Solana and Jasmy are declining after Donald Trump insisted that the customs tariff proposals will continue in March. He suggested many definitions. From the country’s perspective, put a tariff on Canadian and Mexican goods. It also hinted that the country will get a 25 % mutual tariff on steel and aluminum.
These definitions will collect the country into a recession, a situation accompanied by the economic slowdown in high inflation. There is no easy solution in the recession because each federal backup has an unintended result.
High interest rates often lead to slow economic growth, while low rates will lead to high inflation. Now, analysts expect the Federal Reserve to reduce prices to increase the economy and prevent stagnation.
The encryption prices usually decrease when there are these uncertainty cases. This explains why American stocks crashes such as IVV, SPY and Voo Etfs recently.
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