• Here's why:-
❶ Unemployment rate rises in the United States The unemployment rate in the United States reached 4.3% yesterday, exceeding market expectations.
This higher-than-expected number indicates that the#USeconomy may be heading toward a recession.
This news sparked heavy selling in both the#stockmarket and the cryptocurrency market
❷. Strengthening the Japanese Yen The Bank of Japan took an important step by raising interest rates for the first time in 17 years.
This decision has prompted investors to withdraw their money from US stocks and other high-risk assets, including cryptocurrencies.
Before interest rates were raised, borrowing the yen was essentially cost-free, but now that it carries a cost, investors are reevaluating their positions.
❸. Geopolitical tensions and fears of World War III Fears about the possibility of World War III have resurfaced for the fifth time in 2024.
During times of heightened uncertainty, investors tend to shy away from riskier assets, leading to a sell-off in the cryptocurrency market.
The current geopolitical tensions have further contributed to the overall market decline.
❹. Mt.Gox and Genesis Dividends As the Mt.Gox Bitcoin distribution draws to a close, another major event has caught the market's attention.
#Genesis , a prominent cryptocurrency lending platform, has begun distributing over $1 billion worth of Bitcoin.
The market has interpreted the move as a potential precursor to a more significant sell-off, further fueling bearish sentiment.
