The main reason is: the Federal Reserve recently announced that the pace of future interest rate cuts will slow down, with only two cuts likely in 2025. The expectation of rate cuts has diminished, causing panic among investors regarding the uncertain market in the future, which led to the waterfall effect.
This is also a way to clear out those profit-taking positions. Think about it, BTC has risen 7 times from its lowest point of 15476, so it is normal to clear out some profit-taking positions.
The profits that have been realized may be used to buy some undervalued coins, so this is also a sign that altcoins are entering a bull market.