1.- Reference rates. In the United States, the reference rate is rising due to inflation problems, and all these problems of uncertainty and global inflation are causing investors to shy away from risky assets like cryptocurrencies. For this same reason, they tend to fall, just like Amazon and Visa; all equity markets have been declining since January of this year.
2.- Tariffs. Cryptocurrency prices are influenced by investor confidence, general economic trends, and the implementation of policies. As is the case with tariffs that can affect cryptocurrency prices in various ways.
Tariffs can raise the price of goods, thus contributing to inflation and higher interest rates. Tariffs can create global tensions and disrupt supply chains, which contributes to market volatility and also to its decline.
3.- The ongoing geopolitical tensions in the Middle East and other parts of the world make digital currencies suffer greater impact because they are considered a 'risk' market. Therefore, investors have pulled their capital away from cryptocurrencies and are seeking refuge in other, more tangible assets like gold.
4.- The decline in cryptocurrency prices is also the result of profit-taking by retail traders or large investors and the rotation of capital or positioning before the anticipated next altcoin season. #CryptoClarityAct