#CryptoMarketDip
Hey crypto enthusiasts!
The market has been shaky, and you’re probably asking: Is now the right time to buy in? 🤔
Let’s focus on a critical metric many traders overlook during volatile times – the Fear and Greed Index.
This tool offers essential insights into market sentiment and could help you navigate the chaos.
Reasons for the sudden market drop 7/1/2025:
1. A sudden rise in the US 10-year Treasury yield.
2. Unexpected strong US economic data, including:
- Strong labor market statistics
- ISM services index rose above expectations
3. Major liquidations in the cryptocurrency market:
- About $480 million was liquidated
- Bitcoin fell by 5%
- Ethereum fell by 8%
4. Market leverage reduction:
- More than $1 billion lost in open positions for Bitcoin and Ethereum
5. Change in investors' expectations about the Federal Reserve cutting interest rates in 2025
6. Bitcoin price drops below $98,000
7. Shares of cryptocurrency-related companies were negatively affected, such as:
- MicroStrategy
- Marathon Digital
This drop was part of a broader market decline, as strong economic data changed investors' expectations and put pressure on riskier assets such as cryptocurrencies.