#OnChainLendingSurge

Yesterday, the cryptocurrency market experienced a significant downturn, with Bitcoin falling below $100,000 for the first time in several weeks. This decline was primarily attributed to a combination of factors, including rising Treasury yields, inflation concerns, and the Federal Reserve's hawkish stance on monetary policy.

The sell-off began on Wednesday morning, with Bitcoin initially dipping below $100,000 before recovering slightly. However, the downward pressure continued throughout the day, leading to a further decline in the afternoon. By the end of the trading day, Bitcoin had lost over 6% of its value, contributing to $104 million in liquidations.

Other major cryptocurrencies also experienced sharp declines. Ethereum, the second-largest cryptocurrency by market capitalization, fell by nearly 10%, resulting in $130 million in liquidations. Solana, Dogecoin, and Cardano also saw significant price drops, with each losing more than 11% of their value.

The overall crypto market cap erased 7% of its value in the past 24 hours, falling to $3.49 trillion. This marked the lowest level in almost a month, indicating a significant shift in market sentiment.

While the reasons for this downturn are complex and multifaceted, the impact of rising interest rates and inflation concerns cannot be ignored. As the Federal Reserve continues to tighten monetary policy, investors are increasingly seeking safer assets, such as bonds, which offer higher yields. This shift in investor sentiment has put pressure on riskier assets, including cryptocurrencies.

Additionally, the ongoing debate surrounding the regulation of cryptocurrencies has also contributed to the bearish sentiment. Uncertainty surrounding the regulatory landscape can deter investors and hinder the growth of the crypto market.

Looking ahead, the outlook for the cryptocurrency market remains uncertain. While some analysts believe that the recent downturn presents a buying opportunity, others warn of further downside risks.