The cryptocurrency market is experiencing a downturn today due to several key factors:

📉 1. Profit-Taking After Recent Gains

After reaching highs near $105,500, $BTC

has declined to around $102,900 as traders lock in profits from the recent rally. This sell-off has also impacted other major cryptocurrencies like Ethereum, XRP, and Solana.

📊 2. Anticipation of U.S. Inflation Data

Investors are cautious ahead of the upcoming U.S. Producer Price Index (PPI) report, a key indicator of inflation. Concerns that higher inflation could lead to tighter monetary policy are causing market jitters.

⚠️ 3. Liquidation of High-Leverage Positions

A significant number of high-leverage long positions around the $101,000 level have been liquidated, contributing to increased volatility and downward pressure on prices.

🔐 4. Security Breach at Coinbase

Coinbase, a major U.S. cryptocurrency exchange, disclosed a data breach involving the theft of partial customer information. The incident has shaken investor confidence, especially as Coinbase prepares for inclusion in the S&P 500.

📈 5. Overbought Market Conditions

The Crypto Fear & Greed Index has reached 74, indicating that the market is in “greed” territory. Such overbought conditions often precede price corrections as investors reassess valuations.

Despite the current downturn, institutional investors continue to show interest in the crypto market, suggesting confidence in its long-term prospects.