The crypto market is currently falling for 3 major reasons:
*1. Inflation has increased in the US:* Yesterday, October 14, the US CPI data came out. The expectation was 0.2% but it came in at 0.3%, and annual inflation reached 3.7%. It is feared that the Federal Reserve will not lower interest rates, but may even increase them. When interest rates are high, people go into dollars and out of crypto.
*2. Billions of dollars have left the market:* - In 24 hours, $42 billion has left the total market. It has fallen from $2.91 trillion to $2.86 trillion. - Bitcoin is at $81,800, Ethereum at $2,400. - $150 million has been withdrawn from the Bitcoin ETF in just one day.
*3. Leverage is being cleaned up:* Many people had long trades. $172 million was liquidated in 4 hours, and $771 million was liquidated on October 7. As soon as the price drops a little, everyone hits their stop losses and the dump gets bigger.
Simply put: inflation = strong dollar = weak crypto. Until the Fed makes a decision, the market will continue to be up and down. be careful next 13 days