TL;DR
Full Story
Bitcoin, Ethereum, and Solana all shed insane quantities of worth final week.
Why? Bear with us as we cook dinner for a second…
Think about if an plane had a 5 minute delay on any steering changes made by the pilot…
(It’d make flying Spirit, or any Boeing airplane, that a lot scarier).
Weirdly sufficient — that’s type of how the Federal Reserve pilots the US financial system with rate of interest changes.
Each time they tweak rates of interest, it takes — anticipate it…
Eighteen entire months for the consequences to indicate within the financial system.
Which implies when financial information begins flashing warning alerts, it’s usually too late, and the Fed can’t modify shortly sufficient to stem any bleeds.
Over the previous yr or so, the Fed has been attempting to string a needle that appears like this:
Weaken the financial system sufficient in order that we don’t enter hyperinflation…whereas additionally avoiding a recession (aka: pull off a ‘mushy touchdown’).
Which is kinda like attempting to fillet a fish with a hammer.
A few month again, we began to see indicators that the financial system was weakening, although solely mildly — which is sweet if we would like a mushy touchdown.
…however over the previous week, we noticed indicators that this financial weakening is accelerating, with information that confirmed payrolls had been reducing whereas unemployment was growing at a a lot quicker charge than anticipated.
With that concern got here a grueling market unload.
BTC dumped from ~$70k to ~$57.1k, ETH took a dive from ~$3.4k to ~$2.6k, and Solana shed worth from ~$193 right down to ~$130.
Alright, now .
