Why cryptos are bleedingđ©ž? 5 key reasons—ïž
Here are 5 key reasons why the crypto market is experiencing a significant sell-off and price decline:
1. Macroeconomic fears and risk aversion: The crypto market is under pressure from a broader bout of risk aversion in global markets due to fears of an impending recession. Investors are moving away from riskier assets like crypto.
2. Geopolitical tensions: Escalating tensions in the Middle East are adding to market uncertainty and fear, contributing to the crypto sell-off.
3. Miners' struggles: Low hash rates and decreased earnings are causing some miners to sell their Bitcoin holdings or switch to mining other tokens. This increased selling pressure is weighing on BTC prices.
4. Regulatory crackdowns: Increased regulatory scrutiny and crackdowns on the crypto industry in some countries is shaking investor confidence.
5. Liquidation of long positions: The steep market decline has led to extensive liquidations of bullish futures positions, with over $280 million in long position liquidations in the past 24 hours. This has exacerbated the sell-off.
As a result of these factors, Bitcoin has fallen over 8% since the start of the weekend to around $57,000, its lowest price in almost three weeks. Ethereum and other major altcoins have seen similar sharp declines. The crypto market has shed over $300 billion in value in just the past three days, the largest such drop in almost a year.
