Over the past few weeks, the cryptocurrency market has been quite volatile. Looking at the recent decline, it seems to be caused by multiple factors rather than a simple reason.

First, the movements of Bitcoin and Ethereum are prominent. A few weeks ago, Bitcoin dropped from around $90,000 to the $70,000 range, and Ethereum went from over $3,000 to the $2,000 range. When these two major assets decline, it usually affects the entire market. The forced liquidations were also intense, with reports of over $50 million in long positions being liquidated on a major trading platform alone. Those using leverage must have had a tough time.

In addition, the selling pressure from large holders cannot be ignored. There was news that Bhutan sold Bitcoin worth $22.4 million. When such large-scale sell-offs happen, market sentiment tends to deteriorate rapidly.

The situation with altcoins is also tough, with Solana, XRP, and Avalanche falling to multi-year lows. It strongly feels like investors are fleeing risk assets. The shift of funds into safe assets like gold and silver is also part of the background for the cryptocurrency decline.

Another major factor is the retreat of expectations for U.S. interest rate cuts. If the outlook suggests that interest rates will stay high, high-risk assets like cryptocurrencies tend to be sold off. These economic factors seem to be contributing to the current decline.

Right now, the overall market appears to be in a correction phase. The future movement of cryptocurrencies will likely depend on how these economic factors and market sentiment change.