#MarketTurbulence
A recent publication from Glassnode highlighted that open interest in altcoins had reached an all-time high, making the market particularly vulnerable.
"This concentration of leverage elevates reflexivity, amplifying both upward and downward price reactions and increasing fragility in the market structure," Glassnode wrote.
Moreover, comments from U.S. Treasury Secretary Scott Bessent could also be a contributing factor to the bearish sentiment. Bessent recently stated that the U.S. Strategic Bitcoin Reserve will only be funded with seized assets and not through new purchases.
Thus, the confluence of a high PPI index, vulnerabilities in the crypto market, and signals from policymakers created the perfect storm for cryptocurrency liquidations.
Now, the market overall remains tense, with investors closely monitoring upcoming economic data and actions from the Federal Reserve for more clues on the direction of monetary policy.
