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? 🤔
#الهبوط_العنيف
#أسباب_هبوط_العملات_الرقمية
#cryptocrash
#Write2Earn