❗️❗️Why are cryptocurrencies plummeting collectively?
The cryptocurrency market is known for its extremely high volatility, and there are multiple reasons for the sudden devaluation of all cryptocurrencies:
1. Market sentiment: Fear, uncertainty and doubt (FUD) spread rapidly in the market like a virus, triggering a widespread sell-off. This sentiment is often triggered by negative news, regulatory policy changes, or major events affecting the global economy.
2. Giant selling: Those giants who hold large amounts of cryptocurrency are often called "whales", and their selling behavior has a huge impact on the market. Once they start selling heavily, it often triggers other investors to follow suit, creating a chain reaction.
3. Technical adjustment: Market adjustment is a natural law of any financial market. After a prolonged period of rising prices, prices often correct as traders take profits and market dynamics readjust.
4. Liquidity crisis: When the market suddenly suffers from insufficient liquidity, prices tend to fall sharply because sellers have difficulty finding buyers at the previous price. This kind of liquidity crisis is often accompanied by market panic, further exacerbating the plummeting prices. #非农就业数据即将公布 #美国5月核心PCE物价指数年率增幅创2021年3月以来新低 $BTC $ETH