The reasons for the recent market decline are as follows:
The U.S. Department of Justice has been authorized to sell Bitcoin seized from the dark web market 'Silk Road,' which has added downward pressure to the market.
Some institutional investors have sold off large amounts of Bitcoin and other crypto assets, leading to an increase in market supply and exacerbating the price decline.
The market leverage is close to historical highs, further increasing the market's vulnerability. When prices fall, forced liquidations in leveraged trading often worsen the decline.
The continuous appreciation of the U.S. dollar has led to a tightening of global money supply, putting pressure on the prices of crypto assets like Bitcoin.
Tensions in regional situations have increased market uncertainty, raising investors' risk aversion and putting pressure on risk assets like Bitcoin.
Recent U.S. non-farm employment data fell short of expectations, intensifying market concerns about an economic recession, leading to declines in global capital markets, with the cryptocurrency market also being affected.
