#CryptoScamSurge

Why Did Cryptocurrencies Suddenly Drop Yesterday?

The market witnessed a sharp decline of over 5% in a single day, due to the interaction of these key factors:

1️⃣ Collapse of Hopes for Interest Rate Cuts

The latest Consumer Price Index indicated that inflation remains at high levels, prompting investors to abandon their expectations for interest rate cuts, according to CoinMarketCap. This shock negatively impacted high-risk assets like crypto.

2️⃣ Sudden Exodus from Bitcoin ETF Funds

This was reflected in an outflow of approximately $202 million during a single session, particularly from Fidelity funds, which increased selling pressure on BTC and Altcoins.

3️⃣ Massive Liquidations of Leveraged Trades

Within 24 hours, leveraged positions worth over $1.15 billion were liquidated, according to CoinMarketCap. The majority of those positions were long, leading to an additional wave of selling.

4️⃣ New Geopolitical Tensions

Fears escalated following rising tensions in the Middle East, particularly between Israel and Iran, prompting investors to flee to safe assets, in contrast to crypto.