Currently, the cryptocurrency market is experiencing significant fluctuations due to several influential factors. The most prominent of these events are:
1. Launch of Bitcoin ETFs: There is a lot of anticipation about the possibility of approving Bitcoin ETFs in the United States, which could lead to an injection of new capital from institutional investors, but a possible delay or rejection could increase selling pressure on the market.
2. Unlocking of several locked currencies: Recently, millions of coins such as $IMX and $MODE have been decoded, leading to an increase in supply and thus the possibility of selling pressure from investors who acquired these currencies at low prices.
3. General economic impacts: Macroeconomic fluctuations such as high unemployment rates in the United States and a decrease in investor appetite for high-risk assets directly affect the crypto market. Weak economic data increases caution among investors, leading to a decline in demand for digital currencies such as Bitcoin and Ethereum.
4. Regulatory Issues: Rippleâs (XRP) legal battle with the US Securities and Exchange Commission (SEC) remains at the center of attention, and any major developments in this case could lead to significant market volatility due to its impact on the regulatory framework for cryptocurrencies in general.
Thus, the market is suffering from a combination of economic and regulatory pressures, making small traders vulnerable to psychological manipulation, and heavy selling may result from these events to drive out less experienced investors.
