The collapse of the cryptocurrency market today is due to several key factors:
Change in market sentiment: Since the end of February 2025, there has been a sharp shift from 'extreme greed' to 'extreme fear' among investors. This has led to mass sell-offs in both traditional financial markets and the cryptocurrency market.
U.S. trade policy: President Donald Trump imposed increased tariffs on imports, raising concerns about inflation and a potential recession in the U.S. economy. These factors negatively impact risky assets, including cryptocurrencies.
Unrealistic expectations of investors: A recent order by the U.S. president to create a national Bitcoin reserve did not meet market expectations, as it did not provide for additional purchases of Bitcoin by the government. This disappointed investors and intensified downward pressure on cryptocurrency prices.
In aggregate, these factors have led to a significant decline in the prices of major cryptocurrencies.
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