InvestAnswers Lays Out 3 Reasons For The Latest Market Correction

According to widely followed crypto analyst, there are three factors he believes are driving down Bitcoin (BTC) and the rest of the crypto market prices.

In a recent video update, the analyst from InvestAnswers shared with the 431K subscribers to his YouTube channel that the on-going bearish momentum is caused by to three factors.

First, he refers to CryptoQuant data, which that reveals that there has been spike in Bitcoin miners selling their coins to raise cashflow to sustain operations.

“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 analyst also points out that Bitcoin is suffering from “cascading liquidations” that match totals hit most recently in late February.

According to the analyst, another reason why the prices are going down is “fear of the yield curve.”

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.”

However, the analyst points out that curve has since returned to normal.