Why did Bitcoin Crash
The recent Bitcoin crash is a result of several factors:
* Fed's Hawkish Stance: The Federal Reserve's indication of fewer rate cuts in 2025 has dampened investor sentiment towards risk assets like Bitcoin.
* Tightening Liquidity: Rising interest rates and a stronger dollar have reduced global liquidity, making it more expensive to invest in riskier assets.
* Bond Market Volatility: As bond yields rise, investors shift towards safer assets, decreasing demand for Bitcoin.
* Market Structure Weaknesses: High leverage and weak market structure in the crypto market amplify price swings.
* Pre-Holiday Low Liquidity: Lower trading volume during holidays makes the market more susceptible to price manipulation.
These factors combined have created a challenging environment for Bitcoin, leading to a significant price decline.