Top of the Chop
Bitcoin has now fully retraced the infamous ‘air-pocket’, with prices returning to $75k, as the world recoils from the US implementation of trade tariffs. Let's inspect the damage.
G’day Folks,
What a crazy moment of history we are living through.
As the Tariff Tantrum continues, the S&P500 futures have now fallen -22% from their ATH, triggering a TradFi bear market. This move has been sharp and swift, with many comparing the pace of the sell-off to March 2020 and Black Monday in Oct 1987.
As we can see in the chart below, these two historical events are indeed the closest equivalents, although were far more severe in their depth, reaching -35% in a matter of days.
Without question, we are living through a major restructuring of the global order, with trade relationships back up for negotiation, and investors starting to ask whether these events will trigger a recession.
Bitcoin is of course not immune to these macro pressures, and has sold off to the ‘Top of the Chop’, tagging $75k, before bouncing back up to $77k at the time of writing.
Today’s report will provide a snapshot of the damage, and how Bitcoiners are responding to this volatile shock lower.
I will provide my updated thoughts on the sell-off so far, and what it means now prices have hit the lower bound of the infamous $75k to $86k ‘air-pocket’ which we’ve covered since late-December.
📈 Reminder: you can find the charts from our articles on the Checkonchain Charting Website, and a guide in our Charts Tutorial Video.
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