So this morning I checked the portfolio and the crypto market is in a serious red. It seems that why the crypto market is red today is because of news from ISM that released a Purchasing Managers' Index higher than expectations, causing US Treasury yields to rise significantly. As a result, Bitcoin dropped from 102K to 96K in a matter of hours, triggering massive liquidations of about 293 million dollars in just 4 hours.

Interestingly, more than 90% of that total liquidation was long positions that got liquidated. It means many traders hit stop loss. Not only Bitcoin, but almost all altcoins also felt the impact. Ethereum fell 8%, Solana dropped 8%, Dogecoin plummeted 10%, and Cardano lost 12%. Only Chainflip moved against the trend, rising 7%.

So basically, why the crypto market is red today is due to macroeconomics. Rising Treasury yields make investors start risk-off and withdraw funds from risky assets like crypto. Worse, MicroStrategy, which holds the most Bitcoin, also saw its shares drop more than 10%, adding pressure to the market. It looks like this decline isn't over yet based on the liquidation data that keeps swelling. Be careful if you have open positions, as the continuation of the crypto market's red depends on future economic developments.