(it is not a happy day at all 🫤)

The crypto market is down today due to this combination :

1. Macroeconomic Concerns:

The market is reacting to macroeconomic uncertainties, such as expectations of future rate cuts by the U.S. Federal Reserve. These are seen as mixed signals—while rate cuts can be bullish for risk assets like cryptocurrencies, they might also reflect underlying economic weakness, leading to caution among investors.

2. Correlation with Traditional Markets: Cryptocurrencies have maintained a positive correlation with traditional markets like the Nasdaq 100. As tech stocks, particularly Nvidia, showed signs of slower growth, both the stock and crypto markets experienced downturn.

3. High Liquidations:

The market saw significant liquidations, especially of long positions. In the past 24 hours, approximately $143.7 million worth of crypto was liquidated, which includes $126.34 million in long positions. This suggests many traders were over-leveraged, and the cascading liquidations led to further downward pressure on prices.

4. Decreased Investor Sentiment and Legal Concerns:

Legal issues, like the prosecution of the founders of Samourai Wallet, have raised concerns about regulatory risks in the crypto sector, impacting market sentiment negatively. Additionally, a reduction in market liquidity and a muted response to Bitcoin ETFs has contributed to the current bearish trend.

These factors combined have created a cautious environment, causing the crypto market to decline.