Why are Cryptocurrencies Falling? ... 4 Main Reasons
1.- Interest Rates. In the United States, the interest rate is rising due to inflation issues, and all these problems of uncertainty and global inflation are causing investors to shy away from risky assets like cryptocurrencies. For the same reason, they tend to fall, just like Amazon and Visa; all equities 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. This is the case with tariffs, which can affect cryptocurrency prices in various ways. Tariffs can raise the price of goods, thereby contributing to inflation and higher interest rates. Tariffs can create global tensions and disrupt supply chains, contributing to market volatility and also its decline.
3.- Ongoing geopolitical tensions in the Middle East and other parts of the world. They cause digital currencies to be more affected because they are considered a 'risk' market. Therefore, investors have pulled their capital away from Cryptos and are seeking refuge in other, more tangible assets like gold.
4.- The fall in cryptocurrency prices is also the result of profit-taking by retail traders or large investors and the rotation of capital or positioning ahead of the anticipated next altcoin season. #CryptoClarityAct