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THIS IS WHAT IS CAUSING THE CURRENT CRYPTO CRASH!
Don't be discouraged!
The current crypto crash is primarily attributed to the Federal Reserve's recent monetary policy announcement. Despite a 0.25% rate cut, Fed Chair Powell's hawkish stance and indication of fewer rate cuts in 2025 have dampened investor sentiment .
This has led to a significant decline in the crypto market, with Bitcoin falling below $94,000 and Ethereum dropping to around $3,350.
The total market capitalization has decreased to $3.3 trillion, marking the lowest level in nearly a month .
Other factors contributing to the crash include:
Tightening Global Liquidity Conditions: Central banks reducing their balance sheets and rising bond market volatility have created unfavorable conditions for risk assets .
Market Structure Weaknesses: High leverage and market structure weaknesses have also contributed to the downward pressure .
Pre-Holiday Low Liquidity Conditions: The current low liquidity conditions have further exacerbated the decline .
It's essential to note that the crypto market is highly volatile, and prices can fluctuate rapidly. While the current crash may seem alarming, historical patterns and market fundamentals suggest recovery potential .