Why Crypto Market Crash Yesterday and today???

The crypto market crash yesterday and today was largely driven by a combination of factors. One major reason was the decline in capital inflows, which resulted in a liquidity crunch. This led to increased price volatility, making cryptocurrencies like Bitcoin, XRP, and Solana more vulnerable to dramatic price swings.

Another significant factor contributing to the crash was the uncertainty surrounding regulatory developments, particularly with regards to ETFs. Despite positive news like Bitwise's Dogecoin ETF filing and CME Group's potential launches of XRP and Solana ETFs, regulatory hurdles and ongoing legal battles, such as the SEC vs. Ripple, continue to weigh heavily on the market.

Additionally, market sentiment has shifted towards caution, with the Fear and Greed Index declining from "Extreme Greed" to "Greed". This shift often indicates a bearish market, where investors become less willing to take risks.

The crash also saw Bitcoin drop from over 105,000 to around 98000, triggering a ripple effect across the entire market. Ethereum fell sharply from 3,340 to below 3100, while Dogecoin suffered a decline of over 7%+

It's worth noting that some altcoins, like Onyxcoin, managed to thrive despite the market downturn, surging by 12%. However, the overall market sentiment remains cautious, with investors advised to monitor economic developments and market trends closely.

Another reason effect crypto is the latest update on the U.S. stock market as of January 27,

The S&P 500 index closed at 6032.40 on January 26, 2025, with a decline of 1.18%. The Nasdaq index also experienced a significant drop, falling by 2.21% to 21312.00.

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