Today, the market is experiencing this decline (crash) due to several major geopolitical and economic reasons. You can also see in your market that along with major coins like Bitcoin (BTC) and Ethereum (ETH), almost the entire market is in the red zone.
The 3 main reasons behind this crash are:
1. Geopolitical Tension (tension between the U.S. and Europe) At this time, there is a climate of fear in global markets due to tensions between America and Europe over Greenland and threats of new tariffs (taxes). Whenever a trade war situation arises between two major countries or regions, people start selling risky assets like crypto and investing money in gold or cash.
2. FOMC Meeting and Interest Rates
Tomorrow and the day after (January 27-28) there is a meeting of the US Federal Reserve. The market is afraid that due to inflation (price rise), the Fed may not lower interest rates or may take a tough decision. Because of this "uncertainty," major investors (Whales) are withdrawing their money.
3. $1.7 Billion in Liquidations
Due to the market fall, those people who had traded with "Leverage" have had their positions liquidated (closed) amounting to nearly $1.7 billion. This has initiated a chain reaction that has caused prices to drop even more rapidly.
