The cryptocurrency market has seen a significant drop in market capitalization, losing nearly $500 billion in just 48 hours. Popular altcoins like Dogecoin, Solana, and XRP have experienced drops of up to 20%, leaving traders puzzled. This reversal was triggered by the establishment of a US Cryptocurrency Reserve, which initially brought a surge of optimism and market recovery. However, the market quickly turned around and fell back to $2.6 trillion, $100 billion less than before the reserve announcement. This volatility highlights the speculative nature of the crypto market. Record capital outflows from cryptocurrency funds, totaling $2.06 billion, further contribute to the pessimistic outlook. The main cause for this market decline is a global trend towards riskier assets, with investors turning away from speculative markets due to trade wars and economic uncertainty.



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