The crypto market is currently experiencing a downturn due to a mix of macroeconomic and market-specific factors. One of the main reasons is investor caution following the recent FOMC meeting, where the Federal Reserve signaled only one interest rate cut in 2025, less than expected. This hawkish stance has led to reduced risk appetite across markets. Additionally, crypto traders are taking profits after a strong rally earlier in the year, contributing to short-term selling pressure.

Bitcoin dropped below key support levels, and altcoins followed with sharper declines. Uncertainty around regulations, especially in the U.S. and Europe, is also causing hesitation among institutional investors. Moreover, a lack of fresh bullish catalysts and declining trading volumes have amplified the bearish sentiment. Until a strong catalyst appears, the market may continue in a consolidation or downward trend.