On the evening of November 24, 2024, the cryptocurrency market witnessed a strong price drop, leading to declines in many digital asset types. The main causes recorded include:

  1. Weak market sentiment: The market is in a state of "extreme greed" (Fear & Greed index at 83). This sentiment usually signals the possibility of a correction

    cStrong selling pressure due to investors being easily swept into panic selling when prices drop

  2. Global financial policies: The U.S. Federal Reserve (Fed) continues to maintain high interest rates, increasing borrowing costs and reducing the attractiveness of risky assets such as cryptocurrencies. The recent decision to keep interest rates high has led investors to lower their expectations for easing policies in the near future

  3. Mass liquidation of derivative orders: The price drop triggered liquidation of "long" (betting on price increase) orders, with a total value reaching hundreds of millions of USD in just a few hours. This effect adds further selling pressure

  4. Halving event and technical concerns: Bitcoin is in the pre-halving phase (expected in 2024), a historical moment often accompanied by significant corrections due to waiting sentiment and profit-taking behavior before the major event