Artificial Intelligence Answers Why Cryptocurrencies Drop Today?
Today, the cryptocurrency market witnessed a significant decline due to several main factors:
1. The strength of the US dollar: The rise in the value of the US dollar negatively affects risky assets such as cryptocurrencies. The increased demand for the US dollar, along with the rise in US Treasury bond yields, prompted investors to avoid risks in the digital market  .
2. Forced liquidation of leveraged positions: Many traders, especially those who held long positions (expecting higher prices), were subjected to forced liquidation due to falling prices. This led to increased selling pressure, which contributed to the continued decline in the market  .
3. Speculation about ETFs: There are great expectations and speculations about the potential approval of spot Bitcoin exchange-traded funds (ETFs). These speculations, whether positive or negative, affect market sentiment and increase volatility .
These factors combined have caused a significant decline in the market today, with expectations of continued correction during the coming period.
