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Why is there a drop in the crypto market?

1. Stronger than expected U.S. Economic data:
Higher interest rates tend to reduce the appeal of riskier assets, aka cryptocurrencies, leading to decreased investment in the cryptos.
(Source: Investopedia)

2. Increased U.S. Treasury Yields: The rise in bond yields, particularly the 10-year U.S. Treasury yield reaching 4.70% (triggered a risk-off sentiment among investors)
This shift often results in the reallocation of funds from volatile assets like cryptocurrencies to more stable investments.
(Source: CoinGape)
3. High Leverage and Liquidations
I suspect this is the main driver behind the "crash". The crypto market is notoriously volatile and combined with high-leverage trading, it is not prone to liquidations. These forced sell-offs can lead to greater price declines.
The US Govt has been given the greenlight to liquidate 69,000 BTC ($6.5B) from Silk Road, an official confirmed to DB News today.
Market saw significant liquidations, with over $627 million wiped out in a 24-hour period, affecting more than 204,000 traders. The majority of these were long positions, indicating that many investors were betting on price increases and were caught off guard by the sudden downturn. (Source: The Currency Analytics)
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