Today, the cryptocurrency market is experiencing significant losses for several reasons:
Japanese Monetary Policy: The Bank of Japan's recent interest rate hike to 0.25% has caused concern among investors using carry trade strategies between the yen and the dollar. This change made borrowing in yen less attractive, leading to a liquidation of positions and a sell-off of assets, including cryptocurrencies (Cointelegraph)(Investing.com).
Long Liquidation: More than $1 billion of long positions have been liquidated in the last 24 hours, exacerbating the fall in cryptocurrency prices. This is caused by traders being overconfident and overleveraged, which led to a cascade of liquidations as the market moved against their positions (Cointelegraph)(Investing.com).
Global Asset Sell-Off: The fall in the crypto market also reflects a general sell-off in global financial markets due to rising interest rates and geopolitical instability, especially in the Middle East. This has led to a reduction in risk among investors and a withdrawal of funds from riskier assets such as cryptocurrencies (Cointelegraph) (Investing.com).