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Why Is The Crypto Market Down Today?

  • Crypto markets have experienced a significant downturn in just one day, with hundreds of billions of dollars shed.
  • The sudden reversal raises questions about the sustainability of recent gains spurred by the new US Crypto Reserve announcement.
  • The downturn is attributed to a global move towards the risk-off trade, driven by heightened trade war tensions and economic policy uncertainty.
  • Safe haven assets, like gold, continue to outperform, while capital is rotating out of cryptocurrencies due to intensifying macroeconomic headwinds.

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