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The recent crypto market downturn is due to several factors. Anticipation of fewer interest rate cuts by the Federal Reserve has caused uncertainty【6†source】. Additionally, significant outflows from Bitcoin ETFs have increased selling pressure【7†source】. Long position liquidations have forced traders to sell at a loss, further driving down prices【6†source】【7†source】. Finally, the market has breached critical support levels, signaling potential for further declines【7†source】【8†source】.
On June 18, 2024, the cryptocurrency market saw a significant downturn due to lower-than-expected Federal Reserve interest rate cuts, rising U.S. Treasury yields, and ongoing Bitcoin ETF outflows. Bitcoin dropped below $66,000, affecting the entire crypto market, exacerbated by long liquidations.
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