1. Geopolitical and Economic Tensions

Greenland Crisis and Tariffs: The American threats to impose new tariffs on European countries (against the backdrop of the Greenland file) have led to uncertainty in global markets. This kind of news drives investors to flee from high-risk assets (like crypto) and seek safe havens like gold.

Crypto's correlation with traditional markets: Digital currencies have become closely linked to the performance of technology stocks and the Nasdaq. Any drop in global stocks is immediately reflected in the cryptocurrency market.

2. Regulatory and legislative factors

Delay in regulatory laws: In the United States, the delay in passing key legislation to regulate digital assets has resulted in a loss of momentum. Institutional investors prefer legal clarity before injecting significant liquidity.

The fading "Trump effect": Some analysts believe the market has exhausted the moral and political support that accompanied President Trump's return, and investors are now focusing on actual results and realistic monetary policies.

3. Selling pressure and liquidity

Forced liquidations: Recent days have seen the liquidation of long positions worth billions of dollars. When the price suddenly drops, platforms are forced to close trades of traders using "leverage," leading to a cascading sell-off that deepens the decline.

Outflows from ETFs: Some Bitcoin exchange-traded funds have shifted from a constant buying state to "net sellers," reducing the demand that had supported prices above certain levels.

4. Technical and cyclical factors#BTC100kNext? #WEFDavos2026

History of the "maximum pain point": The expiration of massive option contracts at the end of 2025 and the beginning of 2026 acted as a "magnet" pulling prices downward to stabilize in narrow ranges before eventually breaking free.

Natural correction: After every historical rise, the market needs a "consolidation" period or a correction of usually between 20% to 30% to flush out speculators and build a new price base.$XPL