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Why are Bitcoin and Ethereum getting cheaper? Let's analyze the key reasons
In recent days, the cryptocurrency market has been declining, causing concern among investors. Bitcoin and Ethereum, the leading digital assets, are under pressure. Let's figure out why this is happening and what to expect next.
📉 The main reasons for the fall in prices
1️⃣ Macroeconomics and Regulation
Central banks continue to tighten monetary policy, and the US Federal Reserve is signaling a possible rate hike. This makes risky assets, including cryptocurrencies, less attractive. Additional pressure is created by regulators tightening control over the crypto market.
2️⃣ Actions of Institutions
Major players such as BlackRock and Fidelity are taking profits by reducing positions in cryptocurrency. The rise in liquidations in the futures markets also reinforces the downtrend.
3️⃣ Global instability
Geopolitical risks and economic uncertainty reduce investor interest in cryptocurrencies, forcing them to switch to more reliable assets such as gold and the dollar.
4️⃣ Technical factors
Bitcoin and Ethereum broke through key support levels, which triggered automatic selling. If the negative trends continue, BTC could test $55,000 and ETH could test $3,000.
🔮 What's next?
Despite the current decline, the long-term outlook for the crypto market remains positive. However, high volatility is possible in the short term.
💡 Tips for investors:
✅ Follow macroeconomic news
✅ Diversify your portfolio
✅ Consider the correction as a buying opportunity
A fall is not the end, but part of the market cycle! The main thing is to maintain cold calculation and a strategic approach🤝