The recent drop in the prices of $BTC and $ETH was influenced by several global factors. Among them, the following stand out:
Rising interest rates: To combat inflation, central banks have increased interest rates, making safer investments like government bonds more attractive compared to cryptocurrencies.
Cryptocurrency market volatility: Cryptocurrencies are known for their high volatility and the market is still considered new and susceptible to sharp fluctuations.
Global economic conditions: Factors such as the war in Ukraine and lockdowns in China have affected the supply of commodities and had an indirect impact on cryptocurrency markets.
Withdrawals from ETFs: Millionaire withdrawals from Bitcoin index funds (ETFs) also contributed to the drop in prices.
These elements combined create an environment of uncertainty and can lead to significant price movements in the cryptocurrency market.
