BTC Crypto Drops People Are Afraid Again

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2022-05-19 20:22:25

Market situation

Bitcoin yesterday still fluctuated around 38,000 USD. Altcoins also move sideways or down along with BTC.

The situation is tense, but the on-chain data does not show that investors push BTC to the selling floor (decline orange line). Long-term investors continue to hold their BTC.

The amount of BTC stored by the Purpose BTC ETF in Canada has suddenly increased over the past week.

US stocks ended the session in the red. Investors are still worried by a lot of information about war, interest rates as well as the risk of economic crisis.

Oil price continued to increase more than 6.8% to 115 USD/barrel. Gold rose slightly to 1974 USD/ounce.

When BTC falls, there is always a certain group of investors who are always worried. Because these investors look too short-term and BTC in the short-term has large price fluctuations. Depending on the investment strategy and way, if it is a long-term investment, investors need to look at the long-term to assess the growth of the asset.

One of the recent worries is not only inflation but also concerns about economic crisis. From 1970 until now, every time there is an economic crisis, the price of crude oil has increased sharply by 50% or more. This correlation makes investors worry that an economic crisis will take place in the near future.

Besides, the market still has some good news from the jobs report. The United States added 678,000 jobs in February, the unemployment rate fell to 3.8%. This was better than Wall Street’s expectations of 440,000 jobs and a 3.9% unemployment rate. The average salary increase of workers was 5.1%, still lower than many people expected, because the unemployment rate last year was 7.5%.

The drop in the unemployment rate is a positive that still worries investors. Because job growth is also the reason why the Fed is willing to raise interest rates. In addition, the war between Russia and Ukraine is still complicated. So when the Fed officially raises interest rates, investor sentiment will stabilize.

Russian-Ukrainian war situation

Ukrainian President Volodymyr Zelenskyy on Sunday called on the West to do more for his struggling country, saying “sanctions are not enough.” The leader has asked NATO countries to implement a no-fly zone over Ukraine, but so far NATO has refused him.

Senior US defense official gives latest assessment of Russia-Ukraine war. The United States has observed limited changes on the ground over the past day. Russian forces’ continued efforts to advance and isolate Kyiv, Kharkhiv and Chernihiv across the north and east are facing stiff resistance from Ukraine. Russian troops remain outside these city centers, although there is no specific information on their distances. The 40-mile Russian convoy heading to the Ukrainian capital Kyiv continues to stall. The US estimates that somewhere close to 95% of the combat power that Russia has accumulated along the border is now in Ukraine.

The United States observed fighting to the south near Kherson and Mykolaiv, but could not independently verify reports of Russian forces firing on protesters in Kherson. Senior US defense officials have not observed an invasion in or near Odessa, nor do they believe that one is imminent.

In the latest case of more and more companies making similar decisions, PayPal has shut down its services in Russia. The move is a direct response to Russia’s gratuitous war with Ukraine.

Along with the United States and other members of the G7, Japan has imposed sanctions on Russian officials, including freezing the assets of Russian President Vladimir Putin and other officials, to response to the Russian invasion of Ukraine.

On Sunday, Secretary of State Antony Blinken said the United States and its allies were considering banning Russian oil and natural gas imports in response to its invasion of Ukraine. The International Monetary Fund (IMF) has announced that it will provide $1.4 billion in support to Ukraine, and this money will be delivered this week.

The Russian ruble has fallen deeply, each ruble is only equal to 0.008 USD. The euro also fell to a two-year low, because this is a war zone. The Russian stock exchange remained closed for more than a week. Many people believe that the stock exchange is closed to prevent investors from selling.

The pan-European Stoxx 600 index closed down 3.6%, with banks down 6.7% leading to losses as all major industries and exchanges fell into negative territory.

Global markets fell on Friday after Russian forces attacked and took control of Europe’s largest nuclear power plant. A fire broke out at a training facility at Ukraine’s Zaporizhzhia nuclear power plant following an attack by Russian forces early Friday morning. Ukraine’s nuclear agency says the Russian military has now taken control of the facility.

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