The cryptocurrency market has recently experienced a notable downturn, with major digital assets such as Bitcoin and Ethereum witnessing significant declines.
This market dip can be attributed to several key factors:
1. Positive U.S. Labor Market Data: Stronger-than-expected employment figures have reduced the likelihood of imminent Federal Reserve interest rate cuts. Lower interest rates typically benefit risk-on assets like cryptocurrencies by increasing available investment capital and making bond yields less attractive. The anticipation of sustained higher rates has dampened investor enthusiasm for digital assets.
2. **Stock Market