According to Daniel Yan, founder of Kryptanium Capital, the crypto market is expected to experience a period of stability leading up to May 15th. Yan believes that the market’s direction in the latter part of May will be heavily influenced by the release of the Consumer Price Index (CPI) data on that day. In his analysis, Yan predicts that Solana, AI, and Memes will outperform Bitcoin in terms of gains next month. This article explores the reasons behind the market crash in April, including high inflation and a sell-off in US Treasuries, as well as the potential justifiability of the altcoin crash. Despite the recent turbulence, Yan remains optimistic about a strong crypto market in 2024.

Inflation and hot job market in the US

One of the main reasons behind the April market crash in the cryptocurrency industry was the high inflation rate and the overheating job market in the United States. These factors created instability in the larger economic scene, which had a significant impact on cryptocurrencies. In such a scenario, investors tend to move away from riskier assets like cryptocurrencies and seek safer investments, which led to a massive sell-off in US Treasuries.

Sell-off in US Treasuries

The sell-off in US Treasuries further exacerbated the April market crash in the cryptocurrency industry. Cryptocurrencies are highly sensitive to market fluctuations, especially when it comes to traditional financial instruments like US Treasuries. As investors moved away from riskier assets, they liquidated their cryptocurrency holdings, leading to a decline in prices.

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