Despite cooling inflation and recent rate cuts—factors usually seen as positive for the economy—the cryptocurrency market has seen a slight decline over the past 24 hours. This highlights a common market phenomenon: "good news" doesn't always lead to immediate price increases.
Currently, Bitcoin ($BTC) is trading down about 2% near $88,100, while Ethereum ($ETH) has slipped to around $2,940. Much of this movement is attributed to profit-taking following the recent rally. When prices rise quickly, many investors sell a portion of their holdings to lock in gains, creating temporary downward pressure.
The market remains sensitive to "risk-off" sentiment. Even with stable macro data, traders stay cautious due to potential liquidation levels and ETF positioning. This reminds us that while long-term trends are influenced by the economy, short-term volatility is often driven by internal market mechanics and investor psychology.
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