SOKATHO

Hello crypto friends! 👋
You must have noticed something strange in the market: every time a "good" news comes out — like the interest rate cut from the US Federal Reserve, or an agreement between Trump and Xi — instead of the prices going up… they go down! 😅
Let's understand why this happens, in simple and logical steps.
🏦 First: What does "interest rate cut" mean and why is it supposed to raise crypto prices?

The specter of the second government shutdown

Markets are preparing for a scenario of a second collapse by February 14. Bets indicate a 71% chance of a new U.S. government shutdown after the Department of Homeland Security funding bill stalled due to severe political disagreements following the ‎#Minneapolis incident. History repeats itself and the risk of a repeat of the January massacre is very close.

The U.S. Treasury has completed the second auction in the series of $125 billion after offering $58 billion (yesterday, Tuesday). Today, Wednesday, $42 billion of 10-year bonds were offered, awaiting the final blow tomorrow, Thursday, for $25 billion of 30-year bonds. Liquidity has already started to withdraw in preparation for the settlement day on February 17.

China announces a complete and final ban on all crypto activities!
Criminalizing trading, closing funds, and considering foreign cryptocurrency services as financial crimes. Predictions indicate a liquidity withdrawal exceeding a trillion dollars, forcing institutions to liquidate 400 billion dollars of assets within weeks to avoid prosecution.
(Why is this time different from every other time?)

Warning of a severe recession in the American economy shows a spike in layoffs, the highest since 2009 (more than 108,000 jobs in January), coinciding with a decline in job offers to the lowest level since 2020 and an explosion in the gap between property offers and buyers by about 530,000 units.
(Why is the story "serious" this time?)
The market is not going down "by chance"; what is happening is a "disintegration" in the pillars of economic power, and let's break down the frightening numbers that came out yesterday and today.

The American crypto regulation bill is in turmoil; the White House strongly rejects the ethical conditions that prevent the president and his family from engaging in crypto activities, and senators warn of a complete collapse of the law by the end of February if an agreement is not reached.

Why is the story a scam for the market?

Investors were waiting for this law so that #Bitcoin and #Ethereum would have clear legal coverage, but "politics" got involved.

Financial warning: the gap between the yields on 2-year and 10-year bonds has widened to 0.71% (the highest level since 2022) in what is known as Bear Steepening. Historically, this pattern has predicted 7 out of 8 economic recessions since the 1970s, putting stock markets and #crypto at risk.

Why is this movement "frightening" for investors?

Guys, let's understand what "Bear Steepening" means and why it is "poison" for the markets.

The House of Representatives passes a bill to fund the government, which removes uncertainty and restores liquidity and confidence to the financial markets.
Why is this news "gasoline" going up?
Guys, the market was "stuck" and waiting for this moment when the closure crisis ends. All the "fear" that was holding back investors turns into fierce purchasing power.
The data return now means the statistical offices will start working again, so Friday's data (NFP) will come out on time. Investors love numbers and clarity, and this means that the "darkness" has ended.

Global markets are witnessing the largest forced liquidation in history. #gold and #silver and stocks are plummeting together in 48 hours of financial horror due to the explosion of the speculation bubble and the new federal decisions.

(What actually happened behind the screens?)

Guys, what happened is not a "decrease in demand" for gold; what happened is an "explosion of the system" from within. Let's decode this cipher.

Warning of the repetition of the October 10 Black Scenario, a collective collapse hitting the #crypto market

Markets are witnessing a systemic unraveling where everything (stocks, gold, crypto) is being sold in exchange for fleeing to bonds amid a complete evaporation of global liquidity.

What is happening now is not an "ordinary correction"; this is what we call "the great collapse" when you see #Bitcoin, #gold, and #stocks all dropping together, meaning the "system" has fallen apart.

‏Officially: The United States has entered a partial government shutdown after the House of Representatives failed to vote on the funding agreement before the deadline. Global markets are awaiting Monday's opening to assess the magnitude of the shock and the impact of the interruption of economic data.
The thing we were afraid of has happened ‎#Washington has currently partially closed its doors and people are sleeping, but this calm is the calm before the storm that we will see on Monday.

Warning: The United States is heading towards a confirmed government shutdown with an 86% chance. The shutdown will lead to a blackout of comprehensive economic data, including a halt to job reports, inflation, and growth, threatening paralysis in the vision of the #Federal and investors.
We are actually stuck in a bind; it's not just 'employees sitting at home.' The issue is that we are losing our 'eyes' through which we see the market.

President Donald Trump officially announces the nomination of Kevin Warsh to serve as Chairman of the Federal Reserve Board to replace Jerome Powell.
Today's story took a historic turn. Trump fulfilled his promise and brought in "Kevin Warsh" to steer the economy. Let's understand why this guy in particular and what will change:
A man of the "market" par excellence, Kevin Warsh is known for his strong ties to "Wall Street" and he understands the language of the markets better than the language of academics. This means that the upcoming Federal Reserve decisions will be very "sensitive" to market pulse and prices.

A financial storm strikes the markets: More than $6 trillion in market value evaporated in just 30 minutes alongside a sharp and unexpected drop in the prices of #gold and #silver, indicating a collapse in market structure and forced liquidation of major financial positions

What is happening now is the "moment of truth" when you see gold and silver (which are safe havens) dropping along with stocks, meaning the story is not just about "selling"; the story is about "system disintegration"

President
attacks
for refusing to lower interest rates. Trump believes that high interest rates harm national security and cost America hundreds of billions annually in unnecessary interest on debt, and he demands that America pay the lowest interest rate in the world based on its economic strength and the revenue from tariffs that bring in billions.

US Treasury Secretary Scott Pessen states that the United States will not participate in any intervention to support the Japanese yen.
Hey guys, do you remember what we talked about regarding "Japan's intervention" and the market crash? The US Secretary "Pessen" came out and clarified things for us and eased half the problem.
Why is this talk a "breath of oxygen" for the market?

The president warns of a massive military fleet moving towards #Iran and states that time is running out, urging them to be cautious and confirming that the upcoming attack will be much worse.
We are now facing real "Drums of War" when the leader of the largest country in the world talks about an "Armada" and an attack that is "much worse" which means the markets will enter a state of "organized panic". Why do you need to be careful with your money at this moment?

Bitcoin mining devices stop working in America: sharp drop in mining rate (Hashrate) by nearly 40% within two days due to a snowstorm hitting the United States, forcing miners to turn off their devices to save electricity or due to rising energy costs amid fears of having to sell their Bitcoin holdings to cover expenses.