The crypto market's sudden dump likely resulted from a combination of factors including
1. High Leverage Liquidations: A cascade of leveraged positions being liquidated due to sharp price drops, amplifying selling pressure.
2. Macroeconomic News: Negative global economic updates, regulatory crackdowns, or interest rate fears often trigger panic among traders.
3. Whale Activity: Large holders might have offloaded assets, causing sudden price drops and panic selling.
4. Low Liquidity: Post-holiday market conditions with reduced trading volumes can exaggerate price movements.
5. Market Sentiment: Fear of further drops (indicated by low RSI levels) can lead to mass sell-offs.
Monitoring news, whale alerts, and key support levels is crucial to understanding the ongoing market dynamics.