Why the crypto market is collapsing today

The cryptocurrency market is going through a difficult phase as Bitcoin and other major coins have lost their recent momentum. After weeks of strong performance, the total market capitalization has fallen by about 3% and now stands at around $3.54 trillion. This decline comes on the heels of Donald Trump

Donald Trump Donald Trump is a former American politician, businessman and media personality who served as the 45th President of the United States between 2017 and 2021. Trump earned a Bachelor of Science in economics from the University of Pennsylvania in 1968. Trump won the 2016 presidential election as the Republican Party nominee against Democratic Party nominee Hillary Clinton, while she lost the popular vote. As president, Trump ordered a travel ban on citizens from several Muslim-majority countries, redirected military funds to build a wall on the U.S.-Mexico border and instituted family separation policies. Trump remains a prominent figure in the Republican Party and is considered a likely candidate for the 2024 presidential election president The presidential inauguration, which many believed would bring good news for the crypto world.

Disappointment with Trump’s inauguration

Ahead of the inauguration, there was excitement about possible crypto-friendly policies under Trump. However, Trump did not mention cryptocurrencies or blockchain technology in his speech.

This lack of focus on cryptocurrencies disappointed investors and led to speculation that the inauguration was becoming a “sell the news” event. The hype quickly turned to worry, destroying the optimism that had previously driven prices higher.

Bitcoin ETF outflows are contributing to the downturn

In addition to market pressure, there was a significant outflow from Bitcoin ETFs. As of: January 22nd, approx Worth $95.62 million of Bitcoin ETF outflows were reported, mostly from Grayscale and Bitwise funds, excluding BlackRock data.

These outflows are in line with the market’s weakening trend and further contribute to the overall decline

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Liquidations increase market pressure

The market also saw significant liquidations, adding to the downtrend. In the last 24 hours Positions worth $243 million were liquidated, with long traders suffering the most with $192 million. The largest single liquidation worth $5.93 million took place on the OKX exchange.

Bitcoin and other cryptos are declining

Bitcoin, the largest cryptocurrency, has struggled to maintain its gains. It fell 2.9% to $102,600 after briefly hitting a record high above $109,000 earlier this week.

Other major cryptocurrencies such as Ethereum,

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