Why the market is declining

The recent decline in the cryptocurrency market can be attributed to several interconnected factors:

1. Macroeconomic Uncertainty: Escalating trade tensions, particularly due to President Trump's tariff policies, have heightened fears of inflation and slower economic growth. This environment has led investors to retreat from riskier assets, including cryptocurrencies.

2. Regulatory Pressures: Increased scrutiny and potential regulatory actions against cryptocurrency platforms and projects have contributed to market apprehension, prompting sell-offs.

3. Market Liquidations: Significant liquidations, especially among leveraged traders, have exacerbated price declines. For instance, Bitcoin's price drop led to daily losses exceeding $800 million, intensifying the downward pressure.

4. Investor Sentiment: Disappointment over government initiatives, such as the U.S. administration's strategic crypto reserve lacking active Bitcoin purchases, has dampened investor confidence, contributing to the market's downturn.

5. Technical Factors: Analysts have identified weak support at key technical levels for Bitcoin, warning of potential further declines to around $73,000. This technical vulnerability has added to the bearish sentiment in the market.

Collectively, these factors have created a challenging environment for the cryptocurrency market, leading to the recent declines observed across various digital assets.