Over the past 24 hours, the overall cryptocurrency market has lost 6% of its total market cap, impacted by Bitcoin’s decline, which initially surpassed the $$ 100,000 mark.
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Ethereum (ETH) has also seen a sharp decline, falling 6% over the same period and accumulating weekly losses of 15%, settling at $$ 3,400.
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This slowdown has led to significant liquidations in the futures market, with over 374,000 traders liquidated in the past 24 hours, totaling $$ 1.37 billion. Cryptocurrency News
Several factors have contributed to this market decline:
Federal Reserve Interest Rate Decisions: The recent interest rate cuts by the US Federal Reserve and the cautious economic outlook have introduced volatility into financial markets, impacting risk-sensitive assets such as cryptocurrencies.
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Market Sentiment: Negative sentiment, fueled by a variety of factors such as unfavorable news, regulatory concerns, or general market trends, can lead to a sell-off, driving prices lower.
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Despite the current pullback, some experts believe that this decline does not signal the end of the bull market. They view it as a temporary correction, potentially offering buying opportunities for investors.
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However, investing during market declines carries risks, including the possibility of further price declines. It is essential that investors conduct thorough research, assess their risk tolerance, and consider strategies such as dollar-cost averaging to mitigate potential losses.
