Why Is Crypto Crashing? $1 Trillion Wiped Out in Weeks
The crypto market has suffered a sharp downturn in recent weeks, with more than $1 trillion in total value erased across the sector. Bitcoin, the market’s bellwether asset, has fallen from its October high near $126,000 to below $90,000, leaving it down more than 10% for the year. The selloff is being driven by a combination of macroeconomic pressure and risk-off sentiment, including weakness in AI and technology stocks, renewed concerns over economic growth, and persistent inflation and high...
Why Is Crypto Crashing? $1 Trillion Wiped Out in Weeks
The crypto market has suffered a sharp downturn in recent weeks, with more than $1 trillion in total value erased across the sector. Bitcoin, the market’s bellwether asset, has fallen from its October high near $126,000 to below $90,000, leaving it down more than 10% for the year. The selloff is being driven by a combination of macroeconomic pressure and risk-off sentiment, including weakness in AI and technology stocks, renewed concerns over economic growth, and persistent inflation and high...
Will the Fed’s Monetary Policy Fail in a Liquidity-Distorted Market?
Each major crypto crash, interestingly, has coincided with the Federal Reserve’s quantitative easing phases — periods when the Fed deliberately extended the maturity of its balance-sheet assets to suppress long-term yields. These policies, including Operation Twist and QE2/QE3, were meant to stabilize markets, but they also distorted liquidity across the entire system. Chair Jerome Powell recently admitted that the Fed is operating in a state of limited visibility — making slow, risky decisio...
Will the Fed’s Monetary Policy Fail in a Liquidity-Distorted Market?
Each major crypto crash, interestingly, has coincided with the Federal Reserve’s quantitative easing phases — periods when the Fed deliberately extended the maturity of its balance-sheet assets to suppress long-term yields. These policies, including Operation Twist and QE2/QE3, were meant to stabilize markets, but they also distorted liquidity across the entire system. Chair Jerome Powell recently admitted that the Fed is operating in a state of limited visibility — making slow, risky decisio...
