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Why Does Crypto Keep Crashing? (Macro, The Fed, Liquidity)

Mar 6, 2025
Explore the turmoil in the crypto market and its ties to broader macroeconomic challenges. The discussion reveals how inflation and liquidity crises impact the digital currency landscape. Listeners are advised to adopt a patient mindset towards investing, emphasizing the significance of understanding economic trends over individual token fluctuations. Insights into potential recovery timelines for cryptocurrencies add a layer of hope amidst the chaos.
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INSIGHT

Macro-Driven Downturn

  • Crypto markets are collapsing primarily due to macroeconomic factors, not crypto fundamentals.
  • Crypto fundamentals are currently very strong, making the current downturn a macro issue.
INSIGHT

Dollar Strength and Liquidity

  • Dollar strength is a key macroeconomic factor influencing crypto markets.
  • A strong dollar leads to liquidity leaving the system as debts become more expensive to service.
INSIGHT

Weakening Dollar and Bullish Crypto

  • A weakening dollar is bullish for crypto, similar to 2017's bull run.
  • 2017 saw a crypto bull run despite rate hikes and no QE, thanks to a weakening dollar.
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