CandleFocus

Why did the crypto market plunge overnight: Is the bull run still intact?

Author: Content Editor
In the last two days, the crypto market experienced a flash crash, causing the global crypto market cap to dip nearly 8.7% to $3.52 trillion. While Bitcoin only lost a little over 2%, most altcoins suffered larger losses. The crash particularly affected meme coins and Bitcoin sidechains and gaming tokens. The crash was attributed to a mix of market structure weaknesses, high leverage, and liquidity issues. Despite the crash, the broader picture of the crypto market remains positive, with factors such as the weakening US dollar, institutional adoption, and potential rate cuts by the Federal Reserve pointing to a continued bullish trend. Analysts have mixed predictions for the future of Bitcoin and altcoins, with some expecting higher highs and others suggesting a possible correction or consolidation period. However, the overall sentiment is positive for altcoins, with expectations of a potential breakout from the longest bear market and the potential for explosive growth. It is important for investors to be cautious due to the volatile nature of the crypto market.

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