Three Reasons Why the Crypto Market Fell on Tuesday

1. Miner Capitulation:

- A report from CryptoQuant highlighted that miner capitulation was a significant factor.

- After the Bitcoin halving, block rewards dropped 50%, reducing miner revenues by 55%.

- Miners sold more Bitcoin to cover expenses, adding to the selling pressure.

2. Low Stablecoin Issuance:

- Stablecoins like USDT and USDC provide liquidity for the market.

- Analysts noted a decrease in new stablecoin issuance, indicating a stall in capital influx into cryptocurrencies.

3. Crypto ETF Outflows:

- Despite initial success, recent outflows from Bitcoin ETFs added pressure to the market.

- Over $600 million left digital asset investment products following a hawkish Federal Reserve meeting.

Overall, these factors combined led to a significant drop in the cryptocurrency market.