The cryptocurrency market is down primarily due to a combination of rising U.S. Treasury bond yields, fading optimism from the Federal Reserve's recent rate cut, and heavy liquidations of leveraged long positions in crypto. Higher bond yields make safer investments more attractive compared to riskier assets like crypto, leading to capital outflows from the crypto market. Additionally, the Fed's cautious stance on future rate cuts has increased uncertainty among traders, resulting in significant liquidations and selling pressure. Regulatory uncertainties, particularly around ETFs, and weakness in major altcoins like Ethereum, XRP, Solana, and Cardano have further contributed to the market decline. Overall, these factors have led to Bitcoin falling below $113,000 and a broad downturn in the market, with many altcoins experiencing even sharper losses.