Crypto crash can be attributed to several factors.
Institutional Sell-Offs: Large players offloaded massive amounts of Bitcoin and Ethereum, causing a ripple effect in the market. Over $2 billion flowed out of major wallets within 24 hours, according to on-chain analytics .
Regulatory Fears: The SEC is cracking down on crypto projects and exchanges, causing uncertainty in the market. Traders fear stricter regulations could limit adoption and innovation .
Macro-Economic Pressures: The U.S. Federal Reserve's stance on interest rates is affecting investor sentiment. A delay in rate cuts means risk assets like crypto become less attractive, leading to selling .
Liquidations Wiping Out Leverage Traders: Over $500 million in leveraged positions have been liquidated in the past 24 hours. Leverage works both waysโwhen prices drop, traders get forced out, leading to a cascading effect .
Market Uncertainty: Proposed tariffs and the Federal Reserve's quantitative tightening policies have also contributed to the market uncertainty .
Tech Stocks Are in Trouble: The ripple effects of struggling tech stocks are hitting cryptocurrencies hard .
-Investors Taking Profits: Some investors are taking profits, contributing to the market downturn .
