The current crypto market downturn can be attributed to several factors. Here are some possible reasons:

- *Decrease in Spot Bitcoin ETF Inflows*: The significant drop in spot Bitcoin ETF inflows has shaken investor confidence. On May 12, daily net inflows plummeted to $5.10 million, down from $334.58 million on May 9. This decline indicates waning interest in Bitcoin ETFs.

- *Security Breach at Curve Finance*: A potential DNS attack on Curve Finance, a prominent DeFi platform, has raised concerns among investors. Although other projects like Convex and Resupply claim their platforms are secure, the incident has led to caution.

- *US-China Trade War Uncertainty*: The recent 90-day pause in the US-China trade war has created uncertainty, making investors nervous about future developments. The potential for renewed tariffs and trade tensions is contributing to market volatility.

- *Whale Dump and Market Sentiment*: The sale of Trump Coin ($TRUMP) holdings by two major whales at a loss led to an 11% price drop. Such large sell-offs can negatively impact market sentiment and contribute to downturns.

- *Technical Sentiment and On-Chain Data*: Weakening technical sentiments and on-chain data indicating reduced accumulation of digital assets by new investors and traders are also contributing to the market downturn.

- *Trump's Tariff Announcement*: Some market analysts believe Trump's tariff announcement has triggered the recent crypto market dump, potentially leading to a recession in major world powers.

- *Market Manipulation*: Whales and large traders can influence market movements through strategies like spoofing, stop-loss hunting, and liquidity draining, creating artificial market conditions.

These factors combined have led to a decline in the crypto market, with the total market capitalization experiencing a significant drop. The Fear and Greed Index, currently at 70 (Greed), suggests the market may be due for a correction.¹ ² ³