The global crypto market experiences substantial decline. Within the last 24 hours, over $622 million worth of positions were liquidated amid economic tension.
Reasons for Crypto Market Decline
The market correction occurred amid rising U.S. treasury yields, reaching 4.7%. This exacerbated the weakness of the tech sector, triggering a domino effect on the crypto market. Additionally, new labor market data contributes to inflation concerns, potentially leading to stricter Fed policies.
Major Cryptocurrencies Market
Bitcoin dropped by 5.79% to $96,120, slipping below the significant $100,000 support level. Ethereum fell nearly 9% to $3,343. Other cryptocurrencies like Ripple and Dogecoin also experienced significant losses.
Future Steps in Crypto Market
Some investors might see the current downturn as a buying opportunity, aiming for long-term gains. However, high bond yields and macroeconomic risks may continue to pressure the crypto market. Analysts maintain that despite the downturn, the bull market for Bitcoin remains intact.
The crypto market's decline results from U.S. economic shocks, yet the long-term outlook remains positive. Investment decisions should be based on comprehensive market analyses.
