The cryptocurrency market experienced a violent shake yesterday, resulting in a loss exceeding $162 billion in just 24 hours, in one of the strongest correction waves recently.
📉 Key factors behind the decline:
1️⃣ Breaking support levels
Bitcoin fell below 110,000$, a pivotal support level. Ethereum experienced a similar drop, opening the door for a wide liquidation wave.
2️⃣ Institutional money flows
Investment funds linked to crypto recorded significant outflows, further pressuring prices.
3️⃣ Expiration of options contracts
The expiration of Bitcoin and Ethereum contracts worth billions of dollars led to high volatility and additional pressure on traders.
4️⃣ U.S. economic data
The release of stronger-than-expected data increased the likelihood of interest rates remaining high for a longer period, prompting investors to exit high-risk assets such as cryptocurrencies.
5️⃣ Political concerns
Growing concerns over the potential shutdown of the U.S. government at the beginning of October have raised uncertainty in the markets. ⚠️ What does this mean for investors? The market is currently very sensitive to economic and political news. Risk management (using stop-loss orders - capital allocation) has become a necessity. It is essential to monitor important technical levels, as any new break may open the door for more #PCEInflationWatch #BinanceHODLerFF #MarketPullback #BinanceHODLerXPL #SECxCFTCCryptoCollab
