The crypto market downturn can be pinpointed to broader economic turmoil, which has seen massive losses for stock markets across Europe and Asia last few days. When traditional financial markets begin to tumble, the crypto market typically mimics the downward movement as investors look to offload risky and volatile assets.
Why is crypto market downturn?
Crypto prices are falling due to the Fed delaying rate cuts, rising Middle East tensions, and decreased chances of Donald Trump's election. The stock market has lost over $2.9 trillion in a single day, signaling fears of a global recession. Bitcoin remains relatively stable and is gaining institutional support.
While macro conditions are the major driver behind the collapse, Wintermute pointed to other factors, including a recent selloff from Jump Trading, a Chicago-based proprietary trading firm that had become a central player in the crypto industry over the past decade before retreating from the sector.
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