🧭 1. Profit-taking & Liquidations
After Bitcoin reached levels near $123,000, investors began to take profits.
There were massive liquidations of long positions, exceeding $786 million within 24 hours, especially with pressure on long buy positions.
⚖️ 2. Technical Factors
Breaking through significant support levels (like $120,000) triggered automatic sell orders (stop-loss) by systems and trading algorithms.
🏦 3. Macroeconomic Context
The continued strength of the dollar and uncertainty over Federal Reserve interest rate policy, with anticipation for Fed Chair Powell's speech, has led to cautiousness among investors.
The increasing correlation with the stock market means that any volatility in stocks quickly reflects on cryptocurrencies.
🧾 4. Regulatory Landscape
Despite the passage of the "Genius Act" to regulate stablecoins, legislation concerning altcoin ETFs is still pending, creating a state of uncertainty.
The White House's halt on activating further cryptocurrency legislation in Congress has disappointed some investors.
🔄 5. ETF Flows
Divergence in flows: capital outflows from Bitcoin Spot ETFs while Ethereum fund inflows continue, signaling a temporary focus on ETH's rise at the expense of BTC.
Institutions are still entering the market, but flows remain volatile.
🔃 6. Rotation to Altcoins
Following BTC's rise, capital flow began toward altcoins ('altcoin season'), then suddenly reversed (the Altseason Index dropped from 55 to 39), causing strong corrections in altcoins.
