The drop in the cryptocurrency market (Crypto Bear Market) is a natural phenomenon that markets go through from time to time. Let me explain the main reasons behind the current drop, and then I will talk about the predictions regarding when the market might rise again:
---
### ✅ **First: Why is the market down?**
#### 1. **Global Economy and Inflationary Pressures**
* Rising interest rates from central banks (like the US Federal Reserve) put pressure on high-risk assets like cryptocurrencies.
* Investors are turning to safe assets (like the dollar or gold) instead of volatile assets like cryptocurrencies.
#### 2. **Lack of Clear Legal Regulation**
* Some countries issue vague or strict decisions regarding cryptocurrencies (such as banning them or imposing heavy taxes), which creates fear among investors.
* Example: The case of the US Securities and Exchange Commission (SEC) against some trading platforms like Binance and Ripple.
#### 3. **Panic Selling**
* When prices start to decline, some investors begin to sell out of fear of larger losses, which increases pressure and leads to further declines.
* The market often operates on emotion, so panic leads to a stronger fall.
#### 4. **End of Previous Bull Cycle (Cycle Correction)**
* The market moves in cycles: strong rise followed by correction and decline, and this is natural.
* The last strong "bull run" was in 2021, and after that, the market began to correct, which is what we see now.
---
### ✅ **Second: When will the market rise?**
