Crypto Market Dips Sharply as U.S. Economic Pressures Trigger Sell-Off

Crypto Market Suffers Significant Losses

Global crypto market capitalization has plummeted by 6.41%, dropping from $3.59 trillion to $3.36 trillion, reflecting widespread market losses.

Liquidations Surpass $622 Million

Over $622 million worth of crypto positions have been liquidated in the past 24 hours.

Major Cryptos See Sharp Declines

Asian trading hours witnessed a significant correction, with major cryptos such as Bitcoin (BTC) and Ethereum (ETH) experiencing substantial losses. Altcoins also faced setbacks, including a 7.72% decline in Ripple's XRP.

Bitcoin Dips Below $100,000

Bitcoin has dropped 5.79% over the past 24 hours, falling to $96,120 and breaking below the $100,000 support level. Ethereum has lost nearly 9% to $3,343, while Dogecoin has plummeted over 12.77% to trade at $0.3464.

Causes of the Market Correction

• Rising U.S. Treasury yields, suggesting tighter monetary policies that discourage investment in risky assets like cryptocurrencies.
• Weakness in tech stocks, including Nvidia and Tesla, triggering a domino effect that impacted the crypto market.
• Rising job vacancies and inflationary concerns, increasing the likelihood of a more hawkish Federal Reserve stance.

Market Outlook

Despite the current downturn, analysts believe the bull market for Bitcoin remains intact. While leading altcoins have lost recent gains, institutional interest and growing adoption may aid market recovery once macroeconomic pressures subside.

Disclaimer:

The views expressed in this article are solely the author's and do not constitute investment advice. Investors are encouraged to conduct thorough research before making any investment decisions.