WHY CRYPTO MARKET IS BEARISH馃搲 TODAY?
The cryptocurrency market has experienced a bearish trend today, with notable declines across major digital assets.
Several factors have contributed to this downturn:
1. Federal Reserve's Monetary Policy: The U.S. Federal Reserve has indicated a more hawkish stance for 2025, projecting fewer interest rate cuts than previously anticipated. This outlook has dampened investor sentiment, as higher interest rates can reduce the appeal of riskier assets like cryptocurrencies.
2. Profit-Taking and Market Corrections: Following significant rallies, investors often engage in profit-taking, leading to market corrections. This behavior aligns with mean reversion principles and can contribute to short-term price declines.
3. Global Liquidity Concerns: Tightening global liquidity conditions, including shrinking central bank balance sheets, have created an environment less favorable for risk assets. These liquidity challenges have been building over recent months, impacting the crypto market.