A popular crypto analyst is laying out the factors he says are currently pushing down Bitcoin (BTC) and crypto prices.
In a new video, the anonymous host of InvestAnswers tells his 431,000 YouTube subscribers that the current bearish price action is a response to three things.
First, he cites data from the analytics firm CryptoQuant that shows a recent spike in Bitcoin miner outflow.
Explains the analyst,
“These miners are desperate to raise cash to buy rigs, so they can mine more Bitcoin, and that’s the whole endgame here. Sometimes they have to sacrifice what they would otherwise HODL on their balance sheet just to get more Bitcoin.”
The host also notes that BTC is suffering from “cascading liquidations” that match totals hit most recently in late February.
The third factor pushing down the crypto market is “fear of the yield curve,” according to the analyst.
The yield on the 10-year U.S. Treasury briefly fell below the yield on the 2-year U.S. Treasury at the beginning of April.
“Typically, short-term bond yields should be less than the long-term bond yields, and if they’re not, things are broken… If you look at the typical history of inversion, there was a big inversion before the dot-com bubble, boom, followed by a nasty recession that lasted nearly a year and a half.
Second time was the inversion before the Great Financial Crisis, which was a really bad situation. It was nearly two years of miserable times for people in real estate, markets, etc. Then we had the inversion in approximately December 2019, and four months after that we had the C-19 crash.”
The host does note, however, that the yield curve has since flipped back to normalcy.
In fact, the 10-year U.S. Treasury yield hit its highest level in three years on Monday, according to CNBC.
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The post Here Are Three Reasons Crypto Markets Are Correcting, According to InvestAnswers appeared first on The Daily Hodl.
