The crypto market is experiencing a significant downturn, with the total market capitalization dropping by 2.4% to $3.78 trillion. Bitcoin and Ethereum have seen price drops, with Bitcoin falling by 2% to $115,957 and Ethereum slipping by 3.6% to $3,717. Altcoins have taken an even harder hit, with Solana (SOL) down by nearly 4.8%, Cardano (ADA) and Dogecoin (DOGE) falling by 4.89% and 5.87% respectively, and XRP seeing a drop of around 3.7%.¹
*Reasons Behind the Crash:*
- *Fed's Hawkish Stance*: The Federal Reserve's decision to keep interest rates unchanged, combined with warnings of slowing economic growth, has triggered a selloff in the crypto market.
- *Large-Scale Liquidations*: Over $631 million in liquidations have been reported, contributing to the market's downward trend.
- *Trump Tariffs*: President Trump's aggressive tariff strategy is adding to the market's uncertainty.
- *Security Breach*: A $1.4 billion hack of Ethereum-related tokens from Bybit exchange has also impacted the market.²#
- *Temporary Dip*: Some analysts believe the current downturn is a temporary correction within a larger bullish trend.
- *Potential Recovery*: The market may bounce back after macroeconomic uncertainty clears, with some predicting a recovery in the next few weeks.³
