Crypto prices have dropped sharply, leaving many investors wondering what is happening.
The main reason is the new tariffs announced by the United States. This caused fear in the global market and pushed investors to sell risky assets like Bitcoin and Ethereum.
Another reason is new rules for cryptocurrencies. The Genius Act now requires stablecoins to be fully backed and regulated. This makes the market uncertain, and some investors are pulling out.
Big investors are also taking profits after large gains earlier this year. At the same time, high-risk trading positions are being closed, making the drop even worse.
Lastly, recent hacks and scams have hurt trust in crypto platforms, making people more cautious.
Even though prices are falling, experts say downturns like this often create good opportunities for long-term investors.
