Did you not see the graphs last week? Let me tell you what happened (without any complications) ☕
If you logged into your account and saw that prices dropped, don't panic, there was a clear reason. Here is the summary of what we experienced between February 2 and February 8:
1️⃣ The scare on Monday and Tuesday:
We were coming off a very good streak, but suddenly the market turned red. Bitcoin's price dropped quickly and that caused many other assets to fall as well. It was a hectic start to the week that got everyone talking.
2️⃣ Why did this happen?
🟥 Fear in the U.S.: There was a lot of political uncertainty and news about inflation. When the traditional economy gets nervous, investors tend to pull their money out of crypto out of fear, and that pushes the price down.
🟥 The domino effect: Many people were trading with borrowed money. When the price dropped a little, their accounts were automatically closed (liquidations), which forced more selling and accelerated the decline.
3️⃣ What did the big investors do?
🟩 Here’s the interesting part: while less experienced people sold out of fear, large companies and more seasoned investors took the opportunity to buy. For them, a price drop is like seeing a “discount” sign in a store. They bought a lot because they trust that the price will rise again.
🤔 How did the week end?
By Sunday, the market seeks to stabilize. The market stopped falling and began to calm down. Now we are in a waiting period, watching how the price tries to recover little by little.
📝 Note: This is educational content and does not represent financial advice.
If you are curious to see how that rebound looks in real time, take a look at the graphs below. Do you think that the rise that started yesterday, Sunday, has the strength to continue this week or do you still see doubts in the price?
I’ll read your comments 👇
