#CryptoMarketDip #CryptoMarketDip

Reasons for the sharp market drop on 01/07/2025:

1. Sudden rise in 10-year US Treasury yields.

2. Strong, unexpected US economic data, including:

- Strong labor market data

- ISM services index rose above expectations

3. Large liquidations in the crypto market:

About $480 million was liquidated.

- Bitcoin fell by 5%.

- Ethereum fell by 8%.

4. Declining market leverage:

- Over a billion dollars lost on open positions in Bitcoin and Ethereum

5. Investor expectations for the Federal Reserve to cut interest rates in 2025 have changed.

6. Bitcoin price falls below $98,000

7. Cryptocurrency stocks to be negatively impacted, such as:

- Microstrategy

- Digital Marathon

The decline was part of a broader market downturn as strong economic data changed investor expectations and put pressure on riskier assets like cryptocurrencies.