🔥🔥🔥Why is Crypto Down?👀

🤔Bitcoin and Ethereum, among many others, have seen precipitous falls in value recently, putting the crypto market in a difficult position. Ethereum is slightly over $2,200, while Bitcoin has fallen below $50,000 for the first time in months. The current slump is caused by many factors:

👉Lately, the US stock market has suffered a loss of more than $879 billion.

👉A short-term gloomy picture is indicated by the lackluster ETF flows over the last two days.

👉When it comes to cryptocurrency, August and September tend to be sluggish months.

👉As the probability of a Trump administration declines, investors are worried about the impact on the market from the political climate.

👉Some investors are worried that legislative changes may occur under other contenders, despite Trump's reputation as being crypto-friendly.

👉One technical consideration is the reduction of holdings in the Japanese yen. There has been a stampede to sell leveraged assets, which were inexpensive before the Bank of Japan hiked interest rates—the first such move in years—and this is having an impact on the wider financial markets, including crypto.

👉Another factor adding to the market volatility is geopolitical concerns.

👉Further adding to market pressure are the much anticipated Mt. Gox dividends. The rising supply of Bitcoin is causing prices to fall as creditors sell their payments.

Even though there is a lot of uncertainty right now, some market watchers think the recent pullback could be a good time to invest. The steep price declines of Bitcoin and Ethereum, together with the general market downturn, may ultimately result in a robust rebound. The long-term picture appears bright for Bitcoin since, according to historical trends, significant falls usually come before recoveries and the cryptocurrency has still seen positive returns so far this year.

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