#bearishmomentum

🔑 Factors Contributing to the Decline

1. Macroeconomic Uncertainty and Tariffs

Recent announcements of 25% tariffs on imports from Canada and Mexico by the U.S. government have heightened global economic uncertainty. These measures have led investors to adopt a risk-off approach, moving away from volatile assets like cryptocurrencies.  

2. Profit-Taking by Large Holders

After reaching an all-time high near $112,000 in May, Bitcoin has seen significant profit-taking by large holders, or “whales.” This selling pressure has contributed to the recent price decline.  

3. ETF Outflows

There has been a notable outflow from Bitcoin and Ethereum exchange-traded funds (ETFs), indicating reduced institutional demand. This trend has added to the downward pressure on crypto prices. 

4. High Liquidations in Derivatives Markets

The market has witnessed significant liquidations, particularly of long positions, totaling over $600 million in the past 24 hours. These forced sell-offs have exacerbated the price drops. 

5. Inflation Concerns and Federal Reserve Policy

Higher-than-expected inflation data has led to speculation that the Federal Reserve may delay interest rate cuts. This anticipation of prolonged restrictive monetary policy has negatively impacted risk assets, including cryptocurrencies. 

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📊 Outlook

While the current market conditions are challenging, some analysts believe that the crypto market may stabilize as macroeconomic factors become clearer. However, continued volatility is expected in the short term.