The crypto market crash today is primarily attributed to strong U.S. economic data, which sparked fears of interest rate hikes. This led to a risk-off sentiment, causing investors to pull their money out of cryptocurrencies and into safer assets like government bonds ¹.
*Key Factors Contributing to the Crash:*
- _Rising U.S. Treasury Yields_: The 10-year yield climbed to 4.70%, making traditional investments more attractive and drawing capital away from cryptocurrencies ¹ ².
- _Hawkish Federal Reserve Outlook_: The Fed's stance on monetary policy, including potential interest rate hikes, added to market pressures ¹ ².
- _Macro Uncertainty_: Fiscal policies, the looming debt ceiling, and rising fiscal deficits created investor unease, contributing to market volatility ².
*Market Impact:*
- Bitcoin's price dropped 5.04% to $96,713, falling below the $100,000 psychological support level ².
- Ethereum's price declined 8% to $3,394, with its market capitalization falling to $412.29 billion ².
- Other cryptocurrencies, such as Dogecoin and Solana, also experienced significant losses ¹ ².
