📉 August 1 Crypto Dump:
1. Profit-Taking After Recent Rally:
Many altcoins and Bitcoin had rallied in July.
Whales and institutions took profits, triggering a correction.
2. Rate Cut Doubts Hurt Risk Appetite:
Strong U.S. economic data reduced expectations for a Fed rate cut.
Crypto, being a risk-on asset, faced sell pressure.
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📉 August 2 Crypto Dump:
1. Long Liquidations:
Too many traders were long with leverage.
As prices dropped, liquidations accelerated, deepening the fall.
2. Weak Sentiment & Fear:
No fresh bullish news, ETF hype faded.
Traders moved to stablecoins or exited the market, adding to sell pressure.