WHY IS CRYPTO DROPPING?
The #crypto market has been under heavy pressure for the past 10 days, and over $160 billion in value has been wiped out. Here’s a closer look at what’s happening 👇
🔻 1. Mass Liquidations
Billions in leveraged long positions have been liquidated as prices dropped. This liquidation cascade accelerated the downfall.
🔻 2. Options Expiry
Nearly $23 billion worth of $BTC & $ETH options expired recently, which forced spot price volatility and drove prices toward “max pain” levels.
🔻 3. Macro & Interest Rate Fears
Strong U.S. economic data has lowered expectations for interest rate cuts. A “higher-for-longer” rate outlook puts extra pressure on risky assets like crypto.
🔻 4. Political Uncertainty
Fears of a U.S. government shutdown have created risk-off sentiment. When uncertainty grows, investors pull money away from speculative markets.
🔻 5. ETF Outflows & Institutional Pressure
Large-scale outflows from crypto ETFs have drained liquidity, signaling that big funds are scaling back their exposure.
🔻 6. Stronger U.S. Dollar
A rising dollar makes crypto assets less attractive for global investors, putting further pressure on demand.
🔻 7. Regulatory Anxiety
Fresh investigations and stricter rules in the U.S. have added to the fear, slowing down institutional adoption.
💡 Despite these headwinds, whales continue to accumulate $BTC , showing that long-term confidence in crypto remains strong.
⚠️ Disclaimer: This is not financial advice. Always DYOR and manage your risk.