#MarketGreedRising The main reasons for the sudden correction
1. Unexpected US inflation data and interest rate shocks
US inflation data came in higher than expected (consumer prices including core inflation exceeded the target level), easing expectations for an interest rate cut in September.
This strengthened the US dollar and weakened risk-sensitive assets, including emerging market currencies and cryptocurrencies.
2. Profit-taking after a rally
After a record rise in some assets—especially Bitcoin which touched $124,000—traders quickly entered a profit-taking phase, leading to a price collapse.
3. Variable interest rates of major countries
Statements from officials like US Treasury Secretary Scott Pisent calling for a rate cut of half a point or more created sudden market volatility and affected major and emerging currencies.
