Why have cryptocurrencies been in the red since yesterday and today?
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1. Uncertainty in U.S. monetary policy.
The expectation of interest rate cuts by the Federal Reserve has weakened. Although a 0.25% cut is expected in September, the possibility of a more aggressive cut is no longer on the table, which reduces the appeal of riskier assets like cryptocurrencies.
Political pressure, such as the current conflict surrounding the impeachment attempt of Governor Lisa Cook, also adds volatility and nervousness among investors.
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2. Selling by large holders (“whales”) and miners
Recently, miners sold USD 485 million in Bitcoin. This massive sale increases the available supply and puts downward pressure on prices.
Additionally, there are indications that BTC is entering a bearish phase, according to on-chain indicators suggesting deterioration in fundamental market metrics.
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3. Widespread decline in the cryptocurrency market
Around 95% of the top 100 cryptocurrencies are down in the last 24 hours, reflecting a widespread bearish sentiment in the market.
In the specific case of Bitcoin, long positions worth approximately USD 110 million have been liquidated, contributing to the drop below USD 108,000
