#Why do the crypto market dumping again

Today’s crypto market decline stems from a mix of macro-economic, political, on‑chain, and structural factors:

🏦 1. Macro & Monetary Policy Uncertainty

The Federal Reserve's recent dot‑plot suggests only one rate cut in 2024, not two, which dampens risk appetite. This has prompted nearly $600 M in crypto outflows .

Global central bank policy shifts (e.g., ECB pausing rate cuts, Bank of Japan tightening) are triggering a risk-off environment that hits tech and crypto hardest.

👔 2. Political & Trade Tensions

A widely publicized conflict between Donald Trump and Elon Musk shook investor confidence, coinciding with a disappointing phone call between Trump and China’s Xi regarding tariffs .

Crypto mirrors high-risk tech, so when stock markets falter over political or trade news, crypto often drops too .

⛏️ 3. Miner Capitulation (“Miner Sell-Off”)

Rising costs post-halving have forced miners to liquidate holdings to cover machinery and operations. For example, Marathon Digital offloaded 1,200 BTC in a single day—the largest since March .

Miners continue to pull funds from OTC trading desks, increasing downward pressure.

🔓 4. Token Unlocks & VC Sell-Offs

Over $155 B worth of tokens are scheduled for unlocking from 2024‑2030. Many projects (Aptos, Arbitrum, ApeCoin, ImmutableX, etc.) saw sell pressure of $483 M in recent weeks .

These scheduled vesting events add continuous supply into the market, choking price recovery.

📉 5. Retail Panic & Pump‑and‑Dump Aftermath

A new Chainalysis report found that 3.6% of tokens in 2024 were likely involved in pump-and-dump schemes—many collapsed traders or small holders feel the pain when hype dies .

🔭 Short-Term vs Long-Term Outlook

Despite the dump, there are major institutional buyers stepping in during the dips .

Bitcoin tends to find support in the $65K–69K range, driven by high-net-worth accumulation .

Long-term trends still point to growth, even as markets digest political, macro, and supply-side headwinds.

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