📉 Why is the cryptocurrency market declining?

In my view, two key factors are driving the current drop:

1️⃣ Tech fears after DeepSeek’s launch: There’s rising concern about a potential tech-related crash, fueled by the hype surrounding DeepSeek. Cryptocurrencies are being hit particularly hard because they’re a high-risk asset class, especially when traditional markets are closed.

2️⃣ De-risking ahead of the FOMC meeting: It’s common for investors to reduce risk before key events like the Federal Open Market Committee (FOMC) meeting. This is especially true now, given the heightened sensitivity to interest rates, the US dollar, and overall market liquidity.

⚠️ Conclusion: These factors combined are causing increased volatility and hesitation in the crypto space.