WHY MARKET IS CRASHING TO HARD??🤔
#Market_Update The crypto market is experiencing a downturn due to several interconnected factors. Here are some key reasons.
- *Geopolitical Uncertainty*: Stalled US-China trade talks have created macroeconomic uncertainty, triggering risk-off sentiment among investors and widespread selling across digital assets.
- *Whale Sell-Offs*: Large investors, known as whales, are selling off their holdings, contributing to the market downturn. For example, a whale recently offloaded 917 BTC worth $94.30 million to Coinbase Institutional.
- *Crypto Liquidations*: Over $595 million in crypto liquidations have occurred in the past 24 hours, with over 156,000 traders affected. Bitcoin and Ethereum together accounted for more than $314 million in liquidations.
- *Elon Musk vs. Donald Trump Feud*: The feud between Elon Musk and Donald Trump has intensified, causing negative sentiment in the market. Elon Musk's criticism of Trump's budget views led to a 17% drop in Tesla stock, wiping out $100 billion in market capitalization.
- *Slowing Bitcoin ETF Inflows*: Bitcoin ETF inflows have slowed significantly, with recent net outflows of about $1 billion and $267 million this week. This slowing demand has put pressure on Bitcoin's price.
- *Market Sentiment*: The crypto fear and greed index is currently at 55, indicating a neutral mood. However, the market sentiment is cautious, with many traders expecting further volatility.
These factors have contributed to the recent crypto market crash, with major cryptocurrencies like Bitcoin, Ethereum, and XRP experiencing significant price drops. Bitcoin dropped to $101,928.79, while Ethereum plunged 3.73% to $2,489, and XRP dropped 3.34% to $2.13.
