The cryptocurrency market has experienced a downturn today due to several factors:
Macroeconomic Concerns: Rising US inflation and unchanged interest rates have kept investors cautious, leading to a decline in the overall market.
Regulatory Developments: Ongoing regulatory scrutiny and concerns about potential trade tariffs have also contributed to the market's uncertainty.
Market Volatility: The market remained volatile, with some assets experiencing significant losses. For example, Solana (SOL) saw a 10.42% drop due to bearish whale activity and declining DEX trading volumes.
Liquidations: A significant amount of liquidations occurred, with over $1.7 billion in total liquidations, the largest event since 2021. This led to a chain reaction of selling pressure, further driving down prices.
These factors combined to create a challenging environment for the crypto market, resulting in the observed downturn.
