#MarketPullback
Reasons for the Pullback
- Geopolitical Tensions: Escalating Middle East conflicts (e.g., Israel-Iran tensions) have driven investors toward traditional safe havens like gold, pressuring crypto prices .
- Macroeconomic Factors:
- U.S. Inflation and Rates: Subdued inflation data raised expectations of Fed rate cuts, which could benefit crypto long-term, but near-term uncertainty persists .
- Dollar Weakness: A weaker dollar has not fully offset risk-off sentiment, contributing to volatility .
- ETF Flows: While Bitcoin ETFs saw $1.3 billion in inflows recently, altcoin ETFs (e.g., Solana) face regulatory scrutiny, adding to mixed sentiment .