The sharp decline in cryptocurrencies on Binance is attributed to several factors, including ¹ ²:
- Interest Rate Hike Expectations: Increasing expectations that the U.S. Federal Reserve will continue to raise interest rates during the remaining months of the current year, strengthening the dollar and weakening demand for cryptocurrencies.
- Strong Economic Data: Strong economic data in the United States influences investor decisions and makes them prefer to invest in safe assets.
- Regulatory Movements: The campaign waged by U.S. regulators against the cryptocurrency sector, such as filing lawsuits against major cryptocurrency exchanges, affects investor sentiment and makes them avoid trading in cryptocurrencies.
- U.S. Treasury Yields: Rising U.S. Treasury yields provide safe alternative investment opportunities with high returns, reducing the attractiveness of cryptocurrencies.
- Market Fluctuations: Severe fluctuations in the cryptocurrency market make investors hesitant to invest, especially with no stable assets to protect the currency's value.
- Inflation Fears: Concerns about high inflation impact investor decisions and make them prefer safe assets.
- Market Correction Impact: After a massive rally in the first few months of the year, a market correction occurs, leading to a decline in the prices of many cryptocurrencies.
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