Why is the crypto market falling?
One of the main reasons is the liquidation of leveraged positions. Many traders operate with borrowed money, and when the price starts to fall, these positions are automatically closed. This process creates a chain reaction, pushing the price even further down. It's like a domino effect: just one initial push is enough for all the blocks to fall.
In addition, we are experiencing a time when global interest rates remain high. This drives investors away from riskier assets, leading a lot of institutional money to safer options like bonds and fixed income. With less capital in the crypto market, volatility increases and drops become more violent.
It’s also worth remembering that Bitcoin is the market's “thermometer.” When it corrects sharply, most altcoins react even more intensely due to lower liquidity. It's not a weakness of the project — it's just natural market behavior.
