The recent decline in cryptocurrency prices can be attributed to several key factors:

1. Strong U.S. Economic Data and Rising Treasury Yields: Recent robust economic indicators, such as increased job openings and manufacturing activity, have led to a rise in U.S. Treasury yields. Higher yields make traditional investments more attractive, reducing the appeal of riskier assets like cryptocurrencies. This shift has contributed to the downward pressure on crypto prices.

2. Federal Reserve Monetary Policy: The positive economic data has diminished expectations for imminent interest rate cuts by the Federal Reserve. Lower interest rates typically benefit cryptocurrencies by increasing liquidity and driving investors toward higher-risk assets. The anticipation of sustained higher rates has led to a reassessment of crypto valuations.

3. Regulatory Uncertainty: The transition to the Trump administration has introduced uncertainty regarding future cryptocurrency regulations. While there is optimism about potential crypto-friendly policies, the lack of immediate clarity has created caution among investors, contributing to market volatility.

4. Market Dynamics and Liquidations: The rapid decline in crypto prices has triggered significant liquidations of long positions. For instance, Bitcoin's drop below $92,000 led to the liquidation of approximately $555 million in long positions, exacerbating market volatility and further driving down prices.