#MarketPullback 🔍 Why is it dropping?

1. Macroeconomic expectation/ambiguity – Federal Reserve (Fed)

The market had already priced in a rate cut, but the Fed adopted a cautious tone, stating that the data still matters. This creates nervousness because the 'cheap liquidity' that many expected may take longer to arrive.

In summary: it’s not that the rate cut is off the table, it’s that the calm before the movement causes speculators to stay on the sidelines.

2. Capital rotation/correlation with tech stocks

Although crypto is 'different', today we see that when the tech stock market rises (like NVIDIA Corporation hitting new highs), part of the money moves towards those 'clear assets' and withdraws from high-risk (like altcoins). Consequently, crypto slows down or retreats.

This means that even though crypto news is positive, money prefers 'less risk' at this moment.

3. Leveraged trades/liquidations/lack of new catalysts

The drop is also being driven by liquidations of leveraged long positions and the absence of a new major 'catalyst' to clearly push the market upwards. Without a strong new impulse, many positions decide to exit or reduce risk.

Whenever markets 'expect' something (like the Fed, regulations, etc.), they tend to be more unstable.