Bitcoin (BTC) and most Altcoins have plunged in recent days, erasing certain gains made in 2024 and costing many billions of cryptographic investors. The XRP price dropped to $ 3.38, down 30% compared to its heights in November.
Jasmy Coin, popularly known as Bitcoin in Japan, slipped to $ 0.02233, down more than 62% compared to the same period. Popular memes like Shiba Inu and Pepe Coin fell two -digit.
Index for fear of crypto and downward greed
Altcoin prices have dropped this year while fear returned to the market. The Crypto Fear and Greed index fell to 35, down compared to the summit over 90 years last year. He crashed at his lowest level since October of last year.
This fear also affects other market parts, because the CNN Money Fear and Greed index has gone to an area of fear of 39.
Investors are afraid because the United States has recently announced a trade war with its best business partners, including China, Mexico and Canada.
Although these events are not linked to cryptocurrencies, they have an impact on all financial assets. On the one hand, a trade war will lead to higher inflation and pushes the federal reserve to be very fellow.
Cryptocurrencies and other assets often underperform the market when the Fed is a hertis.
Buy the rumor and sell the news
The other main reason for altcoins like Jasmy, Shiba Inu and Pepe Coin have crashed is to buy rumors and sell the news.
Most altcoins have increased hard after Donald Trump’s victory in the November elections. The election was a notable development because he was the first president to campaign on cryptocurrencies as a platform.
Usually investors buy an asset before a key event, then sell it when this happens. For example, the Ethereum Prize Rose before the FNB approval in 2024, then crashed after starting to exchange. The Bitcoin price also remained under pressure after the event in half of last year.
The Wyckoff method explains the Pepe, Jasmy and XRP crash
The other main reason for these altcoins has crashed is the concept of the Wyckoff method. This is a traditional approach that explains how the prices of cryptocurrencies over time. The price action of an asset begins mainly with the accumulation phase, characterized by weak trends.
He then attracts investors, who push him higher during markup or fear of missing (FOMO). This phase includes animal spirits and is characterized by overvoltage.
As the PEPE price shows above, most of these parts have entered the distribution and brand phase.
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