#HumaFinance

Why did cryptocurrencies suddenly drop yesterday?

The market experienced a sharp decline of over 5% in one day, due to the interaction of these main factors:

1️⃣ Collapse of hopes for interest rate cuts

The latest Consumer Price Index indicated that inflation remains at high levels, prompting investors to abandon their expectations for interest rate cuts, according to CoinMarketCap. This shock negatively affected high-risk assets like crypto.

2️⃣ Sudden migration from Bitcoin ETF funds

This was manifested by an outflow worth about $202 million during a single session, especially from Fidelity funds, which increased the selling pressure on BTC and Altcoins.

3️⃣ Massive liquidation of leveraged trades

Within 24 hours, leveraged trades worth over $1.15 billion were closed, according to CoinMarketCap. The majority of those trades were long, leading to an additional wave of selling.

4️⃣ New geopolitical tension

Fears rose after escalating tensions in the Middle East, especially between Israel and Iran, prompting investors to flee towards safe assets, contrary to crypto.@Huma Finance 🟣