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Kamala Harris (kamaharris.fun)

<p>The post <a href="https://coinpedia.org/news/why-is-the-crypto-market-down-today-key-reasons-behind-the-bloodbath-on-satoshi-street/">Why is The Crypto Market Down Today? Key Reasons Behind the Bloodbath on Satoshi Street</a> appeared first on <a href="https://coinpedia.org">Coinpedia Fintech News</a></p> 
<p>Oof, the deep freeze has hit the crypto market AGAIN! The recent bloodbath on Satoshi Street has affected all crypto assets, with<a href="https://markets.coinpedia.org/bitcoin/"> Bitcoin </a>dropping nearly 20% from its $70,000 high and many altcoins falling by 50% or more. This sharp decline is due to several factors converging to create a perfect storm of market troubles.</p> 
<p>We seek to answer your major question, which is: why the decline? </p> 
<h2 class="wp-block-heading" id="h-key-factors-behind-the-crypto-sell-off">Key Factors Behind the Crypto Sell-Off</h2> 
<h3 class="wp-block-heading" id="h-geo-political-tensions-nbsp"><strong>Geo-Political Tensions&nbsp;</strong></h3> 
<p>Geopolitical tensions are having a significant impact on the market, with rising conflicts affecting investor confidence. As these issues escalate, they create additional challenges for the cryptocurrency market, further destabilizing it.</p> 
<h3 class="wp-block-heading" id="h-market-in-recession-fear-grip-nbsp"><strong>Market in Recession Fear Grip&nbsp;</strong></h3> 
<p>Fears of a recession are another crucial factor. Economic indicators suggest a potential downturn, leading investors to become more cautious and sell off various assets, including cryptocurrencies. The Sahm Rule Recession Indicator has surpassed the 0.50 threshold, historically indicating the beginning of a recession in the U.S. economy.</p> 
<h3 class="wp-block-heading" id="h-global-impact-of-the-yen-unwind">Global <strong>Impact of the Yen Unwind</strong></h3> 
<p>The recent drop in the crypto market is partly due to the Bank of Japan’s decision to raise interest rates from 0% to 0.25%. This is the first rate hike in years, increasing the cost of maintaining leveraged investments funded by cheap yen. As a result, investors have fewer funds to invest in crypto assets, causing instability across financial markets.</p> 
<h3 class="wp-block-heading" id="h-mt-gox-distributions"><strong>Mt. Gox Distributions</strong></h3> 
<p>The long-awaited Mt. Gox distributions are adding pressure to the market. As former creditors receive their payouts, some are choosing to sell their Bitcoin, increasing supply and pushing prices down.</p> 
<h3 class="wp-block-heading" id="h-jump-unwinding-positions"><strong>Jump Unwinding Positions</strong></h3> 
<p>According to the LookonChain <a href="https://x.com/lookonchain/status/1820321011730116636" target="_blank" rel="noreferrer noopener nofollow">report</a>, Jump Trading, a major player in the crypto space, is offloading 120,695 $wstETH ($481M), having sold 83K $wstETH ($377M) since July 24. The market has dropped 33%+ since then. This move by a significant market participant can trigger further sell-offs, as others may react to the increased volatility and follow suit, amplifying the downward pressure.</p> 
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   <p lang="en" dir="ltr">Jump Trading is selling 120,695 <a href="https://twitter.com/search?q=%24wstETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$wstETH</a>($481M) and has sold 83K <a href="https://twitter.com/search?q=%24wstETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$wstETH</a>($377M) since July 24, leaving 37,604 <a href="https://twitter.com/search?q=%24wstETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$wstETH</a>($104M).<br><br>The market also began to fall after July 24, falling by more than 33%!<br><br>According to reports on June 20, the US <a href="https://twitter.com/hashtag/CFTC?src=hash&amp;ref_src=twsrc%5Etfw">#CFTC</a> is investigating Jump Trading.… <a href="https://t.co/pOoGZknUDh">pic.twitter.com/pOoGZknUDh</a></p>— Lookonchain (@lookonchain) <a href="https://twitter.com/lookonchain/status/1820321011730116636?ref_src=twsrc%5Etfw">August 5, 2024</a>
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</figure> 
<h3 class="wp-block-heading" id="h-stock-market-correction"><strong>Stock Market Correction</strong></h3> 
<p>The stock market felt the impact when Japan’s <a href="https://www.cnbc.com/2024/08/05/japans-stock-sell-off-will-continue-as-yen-strengthens-ubs.html">Nikkei and TOPIX indices</a> dropped over 8% each, marking the worst stock market loss since 1987 and a 20% decline from their highs in July. This crash follows a previous dip, driven by the Bank of Japan’s interest rate hike and reduced government bond purchases.</p> 
<h3 class="wp-block-heading" id="h-political-uncertainty"><strong>Political Uncertainty</strong></h3> 
<p>Another factor in the crypto crash is the growing possibility that Kamala Harris could defeat Donald Trump in the upcoming election. With Harris raising over $300 million and gaining momentum, <a href="https://www.predictit.org/markets/detail/7629/Will-Kamala-Harris-be-on-the-2024-Democratic-ticket">PredictIt</a> gives her a 53% chance of winning. Investors, concerned about potential policy changes, are adjusting their positions, adding to market instability.</p> 
<h3 class="wp-block-heading" id="h-recent-pump-trapped-fresh-longs"><strong>Recent Pump Trapped Fresh Longs</strong></h3> 
<p>The recent surge in crypto prices led many new investors to enter the market, hoping for continued gains. However, as the market reversed, these new positions faced liquidation, intensifying the downward momentum and contributing to the current market instability.</p> 
<h3 class="wp-block-heading" id="h-altcoin-dispersion"><strong>Altcoin Dispersion</strong></h3> 
<p>The recent surge in crypto prices attracted many new investors, but as the market reverses, these positions are being liquidated, worsening the downward momentum. Plus, Bitcoin’s ongoing trend of lower lows and lower highs signals bearish control, undermining previous bullish patterns. With Bitcoin below the 200-day moving average, further declines are possible, and altcoins are likely to experience more extreme movements.</p> 
<p>In summary, the convergence of geopolitical tensions, recession fears, interest rate hikes, Mt. Gox distributions, actions by major market players, stock market corrections, and political uncertainty has created a highly volatile environment for cryptocurrencies.</p> 
<p>Also Check Out: <a href="https://coinpedia.org/news/crypto-bloodbath-why-is-crypto-crashing-right-now/" target="_blank" rel="noreferrer noopener">Crypto Bloodbath: Why Is Crypto Crashing Right Now?</a></p> 
<p><strong>The crypto market is in turmoil. What’s your next move?</strong></p>

Why is The Crypto Market Down Today? Key Reasons Behind the Bloodbath on Satoshi Street

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