The recent decline in cryptocurrencies can be attributed to several factors:

1. Massive Liquidations: Around $286 million worth of long positions were recently liquidated, which intensified forced selling and exacerbated the downward pressure on prices across the crypto market.

2. Macroeconomic Context: Turbulence in traditional markets, such as the drop in indices like the S&P 500, and uncertainties surrounding monetary policies, including interest rate hikes (notably in Japan), have negatively impacted risky assets like cryptocurrencies.

3. Crypto-Specific Rumors: Significant sales by players like Jump Crypto and speculation about potential Bitcoin sales by the U.S. government have added to market anxiety.

4. Fear Sentiment: The Crypto Fear & Greed Index has dropped back into "fear" territory, reflecting a decrease in investor confidence.

This downturn stems from a combination of external factors (global economic conditions) and internal market dynamics. Recovery may depend on positive signs such as market stabilization or increased demand for cryptocurrencies.