Recent drop in short time
The recent drop in cryptocurrency prices, starting in early October 2024, can be attributed to several key factors:
1. Geopolitical Tensions: Ongoing concerns in the Middle East have created broader uncertainty in global financial markets, impacting cryptocurrencies alongside other assets.
2. Market Liquidations: The crypto market has seen significant liquidation of long positions, with millions of dollars lost in just a few days. This has contributed to downward price pressure.
3. Diminished Trading Activity: Both large transaction volumes and daily active addresses have seen declines, indicating reduced investor confidence. This has also contributed to lower liquidity in the market, exacerbating the downturn.
Despite these challenges, some analysts view this as a "final shakeout," with expectations that the market could rebound as conditions stabilize.
