Causes of today's cryptocurrency decline:
$BTC $XRP $SOL
1. Geopolitical tensions in the Middle East
Israel carried out airstrikes on targets in Iran, which intensified risk aversion and led investors to sell digital assets.
The reaction was also visible in traditional markets: the fall of stock indices and the rise in gold prices confirmed that investors are moving away from risk.
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2. Massive liquidations of leveraged positions
In the last 24 hours, more than $1.1 billion in long positions in futures contracts have been liquidated, causing sharp price movements.
The sharp declines in the market triggered a new wave of liquidations, intensifying downward pressure.
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3. Loss of hope for a rate cut from the Fed
Expectations for a rate cut in the U.S. have been significantly reduced after the latest inflation data, undermining investor optimism and stimulating the sale of risk assets.
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4. Break of the technical formation and market overheating
Technical indicators signal a 'double top' formation for Bitcoin, suggesting a possible short-term correction.
Bitcoin reached the upper limit of the Bollinger Bands channel and found resistance, leading to a drop towards the midline.
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5. Options expiration and profit-taking
More than $3.7 billion in options on Deribit have expired, further intensifying volatility: some market participants began to close positions.
Investors also began to take profits after previous days' increases.
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Summary:
The declines are the result of the simultaneous action of geopolitics (Israel-Iran conflict), macroeconomic factors (Fed, inflation), technical market weaknesses, and large liquidations and options expirations.
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This phenomenon reflects a typical 'risk-off' – investors retreat from risk assets in favor of safer options (for example, gold).
