Cryptocurrencies are down primarily due to rising fears of a possible U.S. government shutdown, macroeconomic uncertainty, and concerns about Federal Reserve interest rate policies. The risk-off sentiment triggered by these factors has caused major cryptocurrencies like Bitcoin, Ethereum, and Dogecoin to decline. Additionally, large liquidations of leveraged crypto positions, pressure from significant options expirations, and shifting investor sentiment reflected in ETF inflows and outflows have intensified the market downturn. Ethereum's price falling below a key psychological level and weak futures activity also contribute to the bearish momentum. The market is currently reacting to a combination of economic uncertainty, institutional caution, and technical resistance, which has erased over $160 billion from total market capitalization in recent days.
