Why did the crypto market fall so much today?

The cryptocurrency market suffered a sharp drop today due to a combination of macroeconomic and technical factors. First of all, there was a global risk-off movement, where investors began to withdraw capital from volatile assets such as Bitcoin and altcoins, migrating to assets considered safer, such as gold, U.S. Treasury bonds, and the dollar. This behavior generally occurs when there is an increase in global economic uncertainty.
Additionally, the macroeconomic scenario remains pressured by the expectation of sustained high interest rates in the United States, as the Federal Reserve has signaled caution regarding rate cuts. High interest rates reduce the liquidity available in the market and make speculative investments less attractive, directly impacting the crypto sector.
Another relevant factor was the increase in geopolitical tensions, which raise the perception of risk in financial markets. In times like this, institutional investors tend to reduce exposure to higher volatility assets, which creates additional selling pressure on the cryptocurrency market.
On the technical side, the decline was intensified by mass liquidations of leveraged positions. With the loss of important supports in the price of Bitcoin, many long positions were automatically closed, creating a cascading effect that further accelerated the downward movement and dragged altcoins down with it.
In summary, the sharp drop in the crypto market today is not linked to a single isolated event, but rather to the sum of global risk aversion, macroeconomic uncertainties, geopolitical tensions, and technical liquidations, which together amplified the selling pressure across the sector.