why crypto is down

The recent decline in the cryptocurrency market is driven by a combination of macroeconomic, technical, and geopolitical factors. Key reasons include rising inflation expectations in the US, which complicate Federal Reserve rate cut plans, causing a stronger US dollar and weakening risk assets like Bitcoin and Ethereum. Technical resistance and profit-taking near Bitcoin's $124,000 level have triggered liquidations of leveraged long positions, further deepening the market fall. Additionally, increased risk aversion and ETF outflows indicate institutional investors reducing exposure, adding to downward pressure. Renewed US-China trade tensions, including a presidential announcement of additional tariffs on China, have also sparked a flash crash, with over $7 billion in crypto positions liquidated recently. This combination of inflation worries, technical factors, institutional profit-taking, and geopolitical tensions is driving the crypto market down currently.