The cryptocurrency market is currently experiencing a significant decline, driven by several key factors:

1. Falling tech stocks: There has been a recent decline in tech stocks, which has negatively impacted the cryptocurrency market. This is due to investor concerns about competition from Chinese AI startups such as DeepSeek, which could threaten Western dominance in the industry.

2. Rising US bond yields: Rising US Treasury yields make them more attractive to investors, leading to a flight of funds from risky assets, including cryptocurrencies. This is contributing to a decline in the prices of Bitcoin and other digital assets.

3. Expectations regarding the Fed’s monetary policy: Investors expect the US Federal Reserve to continue to keep interest rates high for an extended period of time, which negatively impacts risky assets such as cryptocurrencies.

These factors together create unfavorable conditions for the cryptocurrency market, causing the current price drop.