Analysts name the reasons for the sharp drop in the cryptocurrency market

Over the past few days, the cryptocurrency market has experienced a significant drop. The main reason for this was macroeconomic factors, regulatory pressure, and a decline in investor activity.

The price of BTC $98,400.23 Bitcoin 0.56% Market capitalization $1.95 trillion VOL. 24 hours $5.8 billion has fallen below the key $ 57,000 mark, which has triggered a wave of sales. The total market capitalization has lost more than $ 52 billion, which confirms the bearish mood. Ethereum also suffered, its value dropping to $ 2377.

One of the key reasons for the drop was the stronger US dollar. Due to positive economic data related to employment growth and inflation in the United States, investors began to return their funds to traditional assets. This reaction increased pressure on the crypto market.

Regulatory pressure had an additional impact. For example, the U.S. Securities and Exchange Commission (SEC) continues to postpone decisions on the launch of new cryptocurrency ETFs, which reduces investor confidence. The lack of clarity in this matter only increases market volatility.

Among altcoins, Solana has suffered the biggest losses, with its token price falling by more than 5% per day. Investors are currently being cautious and are not in a hurry to buy assets in a fall.

Analysts predict that the market may remain under pressure until the issue of macroeconomic stability is resolved. Cryptocurrencies remain sensitive to global economic changes, and any fluctuations in the global market may further affect their value.