Why cryptocurrencies are dropping today, December 10, 2024
The cryptocurrency market witnessed a significant decline today due to several main factors:
1. Tight monetary policy: The US Federal Reserve indicated that it will raise interest rates soon, which increased pressure on high-risk assets such as cryptocurrencies.
2. Large liquidations: The market was exposed to a wave of large liquidations of futures contracts, which led to a sharp decline in the prices of major currencies such as Bitcoin and Ethereum.
3. Geopolitical tensions and legislation: Regulatory uncertainty has escalated in major markets such as the United States and China, as governments continue to impose restrictions on the use of cryptocurrencies, which has affected investor confidence.
4. Market correction: Cryptocurrencies have witnessed strong increases in recent weeks, which prompted the market to correct prices as a result of profit-taking sales by investors.
These reasons combined led to the decline of Bitcoin and other currencies, with the market losing more than $170 billion in market value in a short period【48】【49】【50】.
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