The Bitcoin, Ethereum, and Dogecoin prices are crashing due to a lack of liquidity in the crypto market.
Capital inflows into the market have declined from $134 billion to $58 billion, indicating a decrease in investment activity.
Bearish sentiment among investors has been sparked by developments on the macro side, such as the recent strong US job data.
Other on-chain metrics, including a decrease in large transactions on the BTC network and a drop in Bitcoin's network activity, also highlight bearish sentiment.