There are a set of factors that have come together and strangled the crypto market, causing prices to drop violently, and making investors ask: Is this the beginning of the end? Or a natural correction? Let's look at the reasons:

🔥 1. Politics is not leaving the market alone

  • Geopolitical tensions and changes in American voters' opinions before the elections tipped the scales, making markets more volatile than ever.

💱 2. Movements of the Japanese yen

  • The decoupling of the yen led to a rise in the dollar against the yen, which put pressure on liquidity in the global market, including crypto.

📉 3. Fear of economic recession

  • Unemployment numbers in America came out bad, and investors started to expect a sudden rate cut from the Fed, leading them to flee from risky assets like cryptocurrencies.

💸 4. Mt. Gox compensations are on the way

  • The impact of compensating the victims of Mt. Gox has not fully manifested yet, but the market is moving cautiously in fear of a massive sell-off soon.

🏦 5. Mysterious movements from Jump Crypto

  • There are signs that the large company Jump Crypto might be liquidating some of its positions, which has increased pressure on the market.

🐋 6. Whales are moving

  • In Solana, an unknown whale moved about 120 million dollars worth of SOL and sold them on Coinbase Prime, which increased panic in the market.

But there are also internal reasons 👇

🪙 7. Cryptocurrencies lack real support

  • There are no stable assets to protect value, and with this high volatility, investors flee in times of fear.

📉 8. The natural correction after a crazy upward wave

  • The market was on fire, many currencies reached ATH, so it's natural to see a strong correction after these surges.

🧾 9. Regulatory ambiguity

  • New laws or threats from regulatory bodies keep the market in a state of constant tension.

🌍 10. Environmental concerns

  • Mining consumes enormous energy, which creates pressure on crypto projects from an environmental standpoint.

In summary:

What is happening now is a storm that has gathered politics, economics, and whales...
Will the market be able to withstand? Or is the decline still ongoing? 🤔

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