The real reasons for the significant decline in the digital currency market since yesterday
$BTC $ETH $BNB The digital currency market witnessed the exit of more than $ 214 billion in market value within hours, according to available data. The total market value decreased from about $ 3 trillion to less than $ 2.8 trillion, a decline of approximately 7.4%.
1. Political and economic tensions: Sudden decisions by the United States and China negatively affected the digital markets, leading to a decline in investor sentiment and increased fear in the market.
2. Heavy selling: The market witnessed heavy selling after digital currencies achieved record highs in the recent period. These massive liquidations weakened confidence in the market.
3. Declining liquidity and the strength of the dollar: With the escalation of expectations of a rise in US interest rates, the demand for the dollar increased as a safe haven, which led to a decrease in the liquidity available in the digital currency market.
4. Shift in market sentiment: The Fear and Greed Index has fallen sharply, prompting investors to reduce their positions in riskier assets such as cryptocurrencies.
Bitcoin fell by 2.41%, while Ethereum fell by 6.19%. Other coins such as Cardano and Ripple saw losses of over 13% in some cases.
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