👀 Reasons why the crypto market collapsed sharply
❗️One of the main reasons why BTC has continuously fluctuated in price in recent months is the decline of the US economy in particular and the global economy in general. The main driving force of the selling pressure was the unemployment rate rising in July to 4.3%, the inflation index showing no positive signs and the interest rate issue not being supported by the US Federal Reserve. .
🔊The Bank of Japan announced an increase in benchmark interest rates, causing the Nikkei stock index to plunge another 6% early on August 5. Compared to its peak in mid-July, the Nikkei has fallen about 20%.
⚠️Recent reports indicate that Jump Trading Crypto - a leading company in the cryptocurrency sector - is exiting some of its positions in the market. This is the direct cause why BTC decreased by about 10% and the market collapsed sharply on August 5.
↗️The capital withdrawal move from one of the major companies had a significant impact, leading to further sell-offs as others followed suit or reacted to increased volatility.
💰On August 2, the stable cash inflow was cut off, replaced by the outflow after the US Federal Reserve meeting. Total daily inflow of all US Bitcoin spot ETFs is negative $237.45 million. Geopolitical tensions in the Middle East and the ongoing war in Gaza are increasing market uncertainty.
