Crypto is down due to a mix of these key factors:
1. Big Investors Paused Buying
- Institutions stopped pumping money into crypto ETFs (like Bitcoin funds), creating less demand.
2. Too Much Risky Trading
- Traders borrowed heavily to bet on prices rising, but when prices dropped, they were forced to sell, making the dip worse.
3. Regulation Worries
- Governments are cracking down on crypto rules, causing uncertainty (e.g., delayed approvals for new crypto funds).
4. Profit-Taking
- After recent price jumps (like Bitcoin hitting $104k earlier in May), many traders cashed out to lock in gains.
5. Stock Market Jitters
- When stocks dip (like the S&P 500), crypto often falls too, as both are seen as “risky” investments.
What to Watch:
- If institutions start buying ETFs again.
- Government policies (pro-crypto = good; strict rules = bad).
Most dips are temporary, but stay cautious with meme coins or overhyped projects!