Title:
《The Truth Behind the Cryptocurrency Market Crash: Federal Reserve's Heavy Hand + ETF Drain + Whales fleeing, this wave of decline is not a coincidence!》
Recently, the entire cryptocurrency market seems to have pressed the 'crash button'. Bitcoin and Ethereum have all dropped sharply, and altcoins have suffered even more. This month’s cumulative decline:
BTC: approximately 21% drop
ETH: approximately 29% drop
Mainstream altcoins: 20%–35%
What exactly is dragging the market down? The core reasons are actually three things:
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1. Macro heavy hand: The Federal Reserve continues to lean hawkish
Interest rate cut expectations have been slashed, and the market is starting to worry about 'higher rates for longer'. Risk assets are naturally being hammered, and funds are fleeing to dollar-denominated assets. Crypto is caught in the crossfire.
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2. ETF drain: Institutions not buying in
Bitcoin and Ethereum ETFs have recently seen continuous net outflows.
Without incoming funds, the market has no support; once money goes out, the destructive power is immediately amplified.
This is the most crucial 'accelerator' for this wave of decline.
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3. Whales are moving: Large holders transferring coins to exchanges
Some large holders are transferring BTC/ETH from cold wallets back to exchanges, which usually signals 'intention to sell'.
Coupled with leveraged liquidations in a chain reaction, the market is directly being pressed down.
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Conclusion: Is this a washout or a precursor to a collapse?
The current decline is not a single point event, but rather a coalescence of macro + institutional funds + on-chain behavior + leveraged liquidations.
The key moving forward is to watch three things:
Whether ETFs stop the bleeding
Whether large holders continue to transfer coins
Whether macro turns dovish
If these three improve simultaneously, a rebound will come; if it continues to worsen, the market will have to endure a bit longer.
