#laranage $LA

Why did cryptocurrencies suddenly drop yesterday?

The market saw a sharp decline of more than 5% in a single day, due to the interaction of these main factors:

1️⃣ Collapse of rate cut hopes

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

2️⃣ Sudden migration 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 liquidation of leveraged positions

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

4️⃣ New geopolitical tensions

Fears rose after escalating tensions in the Middle East, especially between Israel and Iran, prompting investors to flee towards safe assets, in contrast to crypto. @Lagrange Official