this got a bit intense, but hang in there, resilience.

Why did the cryptocurrency market crash?

The current decline in the cryptocurrency market is not caused by internal factors, but is linked to the broader collapse of the Nasdaq. This external shock has had a domino effect across all financial markets, causing cryptocurrency prices to fall along with traditional tech stocks. After carefully reviewing several on-chain metrics, it is clear that this drop was triggered by the significant decline of the Nasdaq, which greatly influenced investor sentiment and market dynamics.
The connection between cryptocurrencies and global financial markets is strengthening over time. When a major stock index like the Nasdaq experiences such a sharp decline, it creates widespread panic, causing investors to withdraw from both stocks and digital assets. This has exerted significant selling pressure on cryptocurrencies, even though their fundamentals remain unchanged. Essentially, the cryptocurrency market has been caught in a storm created by external forces, and navigating through this period will require patience and a long-term perspective.