The crypto market held close to the $2.5 trillion market cap with no signs of movement as traders reassess their positions amid the current market environment.
Investor sentiment weakened amid Middle East tensions, rising oil prices, and hawkish Fed signals following stronger-than-expected U.S. inflation data.
Lack of fresh liquidity, ETF caution, and a record $5.7 trillion options expiry contributed to sideways trading and $393 million in liquidations.
What is triggering the crypto market slowdown?
The broader market slowdown comes as multiple pressures converge on investor sentiment.
The escalation of the ongoing war in the Middle East continues to deteriorate investor appetite for risk assets. Notably, investors are rotating capital back to traditional safe-haven assets such as Gold and other precious metals to hedge against the rising inflation caused by a surge in oil prices, which reached record highs recently.
Gold price rose over 2% today, back above $4,700 per ounce, while Silver rose nearly 4% to hit the $73 mark.
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