This sharp drop in the altcoin market may be caused by a combination of factors. Cherish this opportunity to buy at the bottom. Here are some possible factors:
1. Macroeconomic factors: Changes in the global economic situation, especially changes in monetary policy, have a significant impact on the cryptocurrency market. For example, the Fed's interest rate decisions, inflation expectations and other factors may lead to a tightening of capital liquidity, which in turn affects the price of cryptocurrencies.
2. Geopolitical factors: Geopolitical tensions, such as the conflict between Iran and Israel, may also have an impact on the cryptocurrency market. During periods of geopolitical tension, investors may turn to safer assets such as gold and silver, leaving risky assets such as cryptocurrencies aside, leading to a market decline
3. Market sentiment and technical factors: The cryptocurrency market is highly volatile, and changes in market sentiment and technical indicators may have a significant impact on prices. For example, excessive leverage trading may trigger a chain reaction when the market falls, leading to a further decline in prices
4. Regulatory policies: The regulatory policies of various countries on cryptocurrencies have also affected market trends to a certain extent. For example, regulators in some countries have strengthened supervision of cryptocurrency transactions, which may increase investor uncertainty, leading to a drop in prices.
The CEX copycat data crashed the market, and the interpretation on the market was to clear leverage and reduce burden. The underlying meaning was to tell everyone that after this wave of liquidation, a new round of copycat rebound market is about to begin.
