Key Factors Behind the Crypto Market Decline
The crypto price drop today is mainly due to several reasons, including Trump’s tariff policies and the recent PCE inflation data. Yesterday, President Donald Trump shared a Truth Social post, alleging that China has violated the trade agreement with the US. His post read, “China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US. So much for being Mr. NICE GUY.”
This statement has significantly shaken the crypto and stock markets. Though BTC rose to $106k following the post, it dropped to $104k soon, now reaching $103k.
In addition, the latest PCE report, which came favourably, hasn’t been enough to shift sentiment. This keeps the speculations of the Federal Reserve’s interest rate cuts in June very low. Polymarket predicts a near certainty of no interest rate cut on June 18, with odds at 96%.
Moreover, a massive options expiration added to the market’s woes. $12.1 billion in Bitcoin options and $2.13 billion in ETH options expired on Wednesday, sparking volatility as traders repositioned their portfolios.
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