The entire market has dropped below a one trillion dollar market cap and were seeing rising fears of inflation in the federal reserve, increasing interest rates at a faster rate, so todays video. I want to talk about everything we need to know why the market is crashing whats happening and is it going to continue to drop or what exactly is going on? So first thing is going to be the overall crypto market right now sitting right below a one trillion dollar market cap at 989 billion dollars. This is the first time weve really seen. Crypto dropped below that one trillion dollar market cap since 2020. So this has caused a lot of fear in the market because of this weve seen, massive amounts of liquidations were seeing that over the last 24 hours there have been over 1 billion dollars in liquidations. Most of these positions are from long positions a lot of people who were betting, that the market had bottomed out and that we were going to see prices start to rally. But these a lot of these positions have been liquidated because bitcoin dropped as low as 22 600 per coin. In addition to this, with bitcoin were also seeing that it has broken below this um horizontal pattern that we have seen over the last couple of days. Really this just consolidation we have seen over the last month right now, bitcoin has dropped significantly significantly below this. You can see on the four hour charts also on the daily charts, has just completely dumped down below this, so this is no longer in play.

We have completely broken below this support, and now the big question is gon na be well whats. Gon na happen. Next with crypto, are we going to continue to fall? What exactly is going on? So first thing is going to be with consumer price index. We talked about this in the video the other day. What we see is that inflation rose by 8.6 in may. This was higher than expectations and because of this now many top analysts um like lets say: barclays are predicting that the federal reserve is going to be um, surprising markets this week on june 14th and june 15th during their meeting with a 75 basis, point um hike, Rather than just a 50 50 point basis, hike and because of this, the markets are reacting, people are saying well, inflation and the cpi data was much worse than we thought so the federal reserve. It is just likely that they are going to increase rates at a faster rate, so this is something to keep in mind over the coming days, because, according to economists at barclays and many of the other top firms, theyre saying that look, they think that the central Bank and the federal reserve now have the the need to actually increase rates, because inflation is just continuing to get worse. They thought, after that 50 basis, point hike. Things might start to get a little bit better taper off a bit, but no things are continuing to get worse so because of this were expecting that they could increase rates and even faster rate, if not in this june meeting potentially in july.

Overall, though, were still factoring in higher rate increases over the coming months and through the end of 2022.. Next thing i want to talk about, though, is going to be with bitcoin. In particular, a lot of people are getting scared about bitcoin continuing to fall, whats going to happen. Well, we got to remember that its not just you its not just me its everyone is in the same boat. Together were seeing that elon, musk and michael saylor. Now, theyre down a collective 1.5 billion dollars in their bitcoin positions, yep they have not sold, they have continued to say they have no plans of selling, and so because of this just remember that were probably going to see. Companies like tesla and microstrategy, come out in the coming months and announce that theyre potentially buying more bitcoin at a better price than they were able to a year almost two years ago now. So this is something to keep in mind. In addition, this the other bad news with crypto, is that we have seen crypto lending firm celsius. Celsius has paused all withdrawals, all transfers and they said really its because of extreme market conditions. This is a big deal because crypto um lending platform celsius is one of the biggest in the space. They have eight billion dollars, lent out declines with about 12 billion dollars in assets under management, so this has caused widespread fear in the market. On top of everything, with interest rates on top of everything with with prices falling, this is something again that is causing massive amounts of fear.

So me, personally, what ive been doing right now is. I have been adding a little bit to some of my long positions with bitcoin in particular, because bitcoin, in my opinion, is the safest crypto to invest in its definitely going to bounce back its just a matter of time. So i am adding a little bit to my positions in bitcoin in particular, because i think 22 000 23 000 are great prices to get in long term and me im looking. You know three four five years from now minimum for all of these investments. So let me know your thoughts on the overall market. What you think but looks like things are going to continue to get worse right now, especially because of inflation, rising interest rates and the federal reserve meeting coming up in the next 48 hours. I hope you enjoyed.