Cryptocurrencies experienced a sharp decline due to a combination of concurrent factors. The most significant of these is the rising expectations of an increase in U.S. interest rates, which enhanced the attractiveness of the dollar at the expense of digital assets. Regulatory pressures on trading platforms and instances of mass liquidation of funded contracts also contributed to the accelerated pace of selling. The weak market liquidity intensified the volatility amid a global economic uncertainty. Despite the downturn, some investors see this correction as an opportunity to reposition and build long-term positions in fundamentally strong projects.
