$ETH Explanation of the Crypto Market Decline – And What’s Next

The crypto market is under pressure today, with Bitcoin fluctuating around $104.9K (down ~2.6%). This pullback is triggered by several key factors:

1. Geopolitical Turmoil

Israel's military airstrikes against Iran have shaken global markets, triggering sharp risk sentiment. Bitcoin fell nearly 4% amid fears of a broader conflict.

2. Mass Liquidation

Over $1.16 billion in long crypto positions have been liquidated in just 24 hours—dominated by long liquidations—which has intensified the downward pressure.

3. Fed Interest Rate Policy Changes

Disappointing US inflation data has dashed hopes for a Fed rate cut in June. With hopes for a rate cut gone, crypto has lost some of its recent tailwinds.

A simple pullback? Technically, yes. $BTC has wiped out gains and fallen below the key support zone around $106K–$108K. The next critical support is between $100K–$102K, but if that holds, we could see consolidation and recovery back.