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The recent crash in the cryptocurrency market can be attributed to a combination of factors that have created significant turbulence. Here are the main reasons:

Regulatory Concerns: One of the key triggers was the expectation that the U.S. Securities and Exchange Commission (SEC) might reject pending Bitcoin spot ETF applications. A notable research piece from Matrixport speculated that the current SEC leadership, which is seen as less favorable towards cryptocurrencies, might delay the approval of these ETFs. This led to a massive liquidation of positions as investors reacted to the potential regulatory roadblocks​ (Coinpedia Fintech News)​​ (Mitrade)​.

Market Liquidations: The market experienced a substantial amount of forced liquidations. Around $600 million worth of crypto positions were liquidated in a short period, exacerbating the sell-off. These liquidations were triggered by the sharp drop in prices, which hit long positions particularly hard. The resulting cascade effect amplified the market decline​ (Mitrade)​.

Macroeconomic Factors: Broader economic concerns have also played a role. Uncertainty regarding interest rate policies and the global economic outlook have made investors more risk-averse, leading to reduced inflows into cryptocurrencies. This shift away from high-risk assets like cryptocurrencies has been exacerbated by signs of slowing economic growth in major economies​ (Coinpedia Fintech News)​.

Market Sentiment: Negative sentiment has been pervasive across the crypto market, with fears of further declines. This sentiment was compounded by technical issues and the failure of major projects and exchanges, which shook investor confidence. The combined impact of these events has made the market particularly volatile and prone to sudden drops​ (Mitrade)​.