$BTC

There are different reason behind the crypto market Downturn.

The major ones are:

The coming of the new year.In the New Year the US have done many increasing in their interests rate.They are facing inflammations etc.

Due to different wars in the world like Palestine and Isreal

And the other one is:

Why

The past week has been rocky for the crypto market. Following the Federal Reserve’s recent rate cut and signals of limited future cuts, global markets tumbled. Bitcoin saw a sharp drop from its all-time high of $108,000 to around $90,000, while many altcoins suffered even steeper losses, erasing much of their bull market gains.

Matt Hougan, Chief Investment Officer at Bitwise Asset Management, attributed the pullback to a “natural unwinding of leverage.” Despite the downturn, he emphasized that the long-term outlook remains positive, with the broader bull market still intact. While it may not feel like it right now, these corrections are often part of a healthy market cycle.

A Christmas Rally on the Horizon?

As the holiday season kicks off, investors are turning their focus to the potential for a “Christmas rally.” This term refers to the tendency for the U.S. stock market to see gains during the last five trading days of the year and the first two of the new year. With Bitcoin closely tied to the performance of U.S. equities and gold, a strong rally in traditional markets could lift sentiment in the crypto space as well.