Why are cryptocurrency markets so depressed today?

Why is the cryptocurrency market in a downturn today? Here are some possible reasons that may shed light on the underlying logic behind market fluctuations.

First, the upgrade of Ethereum did not have as significant an impact as the market expected. Although this upgrade called "Dencun" is highly anticipated, its impact on the price of Ethereum (ETH) is quite limited, and even led to a price decline to a certain extent. This undoubtedly brought some disappointment to the market.

Secondly, the interest rate cutting policies of the Bank of Canada and the European Central Bank may also have a certain impact on the cryptocurrency market. Cutting interest rates often means more liquidity is released into the market, but it can also trigger concerns about inflation and currency depreciation. This concern may be transmitted to the cryptocurrency market, causing investors to temporarily avoid risks.

In addition, the rapid pace of interest rate cuts originally expected by the central bank may not come as expected. This means that the market's loosening expectations have been disappointed, which has put a certain amount of pressure on the cryptocurrency market. As a highly volatile asset, the price of cryptocurrency is often significantly affected by market sentiment and expectations.

Furthermore, the recent regulation of the cryptocurrency industry by the U.S. Securities and Exchange Commission (SEC) has also attracted market attention. The SEC has been criticized by some in the cryptocurrency industry as being too strict and imposing the disclosure rules of traditional financial markets on the cryptocurrency industry. This change in the regulatory environment has undoubtedly brought a certain degree of uncertainty to the cryptocurrency market, which in turn has affected the performance of the market.

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