Why is the cryptocurrency market collapsing today?

the Cryptocurrency market It has hit a rough patch, as Bitcoin and other major currencies have lost their recent momentum. After weeks of strong performance, the total market capitalization fell by about 3%, now reaching about $3.54 trillion. This decline comes a little later Donald Trump Donald Trump Donald Trump is a former American president, politician, businessman, and media personality, who served as the forty-fifth President of the United States between 2017 and 2021. Trump earned a Bachelor of Science in economics from the University of Pennsylvania in 1968. Trump won the 2016 presidential election. The Republican Party nominee was elected against the Democratic Party nominee Hillary Clinton while losing the popular vote. As president, Trump ordered a travel ban on citizens from several Muslim-majority countries, diverted military funding toward building a wall on the US-Mexico border, and implemented a family separation policy. Trump remains a prominent figure in the Republican Party and is considered a potential candidate for the 2024 presidential elections president His presidential inauguration, which many believe will bring good news to the cryptocurrency world.

Disappointment with Trump’s inauguration

In the run-up to the inauguration, there was excitement about potential cryptocurrency-friendly policies under Trump. However, during his speech, Trump did not mention cryptocurrencies Or blockchain technology.

This lack of focus on cryptocurrencies has left investors disappointed, leading to speculation that the opening has become a “news selling” event. The hype quickly turned into fear, damaging the optimism that had previously driven prices higher.

Outflows from Bitcoin ETFs add to deflation

Adding to the market pressures, there has been a significant influx of Bitcoin exchange-traded funds. As of approximately January 22nd With a value of $95.62 million Outflows from Bitcoin ETFs were reported, mainly from Grayscale and Bitwise funds, excluding BlackRock data.

These outflows are consistent with the weak market trend, further contributing to the overall decline

• Read also:
• Bitcoin Price Forecast January 23: Will a $91K Drop Come Soon?
• ,

Liquidations exacerbate market pressures

The market also witnessed significant liquidations, adding to the downward trend. During the past 24 hours, $243 million value of positions The shares were liquidated, with long-term traders suffering the most at $192 million. The largest liquidation of $5.93 million occurred on the OKX exchange.

Bitcoin and other cryptocurrencies decline

Bitcoin, the largest cryptocurrency, is struggling to maintain its gains. It fell 2.9% to $102,600 after briefly reaching a record high of more than $109,000 earlier this week.

Other major cryptocurrencies such as Ethereum, Ripple, and Solana also fell by 3% to 4%, while cryptocurrencies such as DOGE, SHIB, TRUMP, and PEPE saw sharp declines of 5% to 10%.

Frequently asked questions