š Why is Crypto Crashing? Here's What You Need to Know
The current crypto crash is mainly due to the Federal Reserveās recent monetary policy announcement. Despite a 0.25% rate cut, Fed Chair Powellās š hawkish tone and fewer expected cuts in 2025 have shaken investor confidence.
š Key impacts:
Bitcoin ā¬ļø dropped below $94,000.
Ethereum ā¬ļø now around $3,350.
š Total market capitalization fell to $3.3 trillionāthe lowest in a month.
ā ļø Other contributing factors:
šµ Global Liquidity Tightening: Central banks reducing balance sheets and volatile bond markets are pressuring risk assets.
āļø Market Structure Issues: High leverage and structural weaknesses are amplifying selling pressure.
š Low Liquidity Conditions: Pre-holiday trading volumes are worsening the decline.
š” While this crash may seem alarming, remember that crypto is highly volatile. Historical trends show recovery potential!
š Disclaimer: Third-party opinions included. Not financial advice. May contain sponsored content. See T&Cs.
