The whole market is crashing. Just a couple days ago I talked about how ethereum and Solana were doing so well and I was seriously rooting for them to perform well and gain much value. 2 days later the whole market falls into chaos. I guess I am the person to blame here. Something of bad luck you could say. Now ethereum is down to $3,400 and Solana is down to $158. The whole market is down and when you look more broadly, the stock market is down as well. The s&p 500 and NASDAQ is also down. So it is kind of understandable that this crash isn't only about crypto. It is a macroeconomic factor and the catalysts are there to indicate that this is a widespread downturn and not just Bitcoin and Ethereum.
So let's talk about those catalysts. Try to explore how these crashes work and what makes them tick so there are stuff that are temporary and there are stuff that are permanent as well as being purely crypto and macroeconomic factors. You already understand how the crypto factors work. These are basically movements inside the crypto part of the world and it is disconnected from the rest of the world such as the financial markets. Only crypto gets a crash in this situation. While the macroeconomic factors show that both the financial market and the crypto market are down at the same time. Which is exactly what we're seeing right now. Now temporary setbacks are stuff that are decided one off but it doesn't stick around for much long. These would indicate different liquidations by different entities or buying sprees buy different entities while permanent factors include the most well-known ETFs. The ETFs of Bitcoin solana, ethereum and other big tokens are permanent. Because ETF is here to stay. It's not going anywhere. So the changes in prices that happened due to those ETFs are permanent. In this case it was a good result as due to these the prices have gone up and more people have been able to get into crypto through institutional systems.
For now I am yet to find some good reason for which I could explain why the market is crashing right now. Other than the fact that the financial markets took a nosedive. I do believe there are other reasons involved but the 1.1 trillion being wiped off from the financial markets is a good enough reason to explain the current crypto crash ongoing.
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