The first big reason is global economic pressure. America released a new economic report on 30 May, in which it was reported that inflation is increasing again. After this, the Federal Reserve (Fed) signaled that interest rates can be increased again.
When interest rates rise, investors withdraw money from risky assets like crypto and shift to safe investments like bonds.
This is the reason why Bitcoin showed a dip of 6% in a day, and other altcoins also followed.
Why did Bitcoin fall on 11 October?
On the night of October 11th, Bitcoin saw a sudden drop, shaking the entire crypto market. Experts believe there were some strong global and market-based reasons behind this sudden drop. The first reason was Donald Trump’s new tariff announcement against China, which spread panic among global investors. The second major factor was high leverage trading—where large traders’ stop-losses were triggered, leading to massive liquidations and the price going down further.
And I’ve seen Bitcoin touch its all-time high in recent days. This could also be a reason why profit-booking started. Market technical charts were also in the overbought zone, which is why the drop accelerated. Some analysts are also saying that high inflation and interest rate fears forced investors to stay away from risky assets, which had a direct impact on Bitcoin.
2. Impact of Ethereum ETF Approval Delay Last week,
Crypto market The news of Ethereum ETF approval created bullish sentiment in the market. But on 30 May, an update came that the SEC has delayed the final decision on the Ethereum ETF till 15 June.
This delay was a negative signal for investors, which had a direct impact on the price of Ethereum. ETH showed a decline of 8%, and along with it, tokens like Solana, MATIC, and Cardano also came down.
3. Whale Dumping – Big Selling Activity
According to the data of crypto analytics firm Glassnode, 3000+ BTC was sold simultaneously from a whale wallet last night. This sudden movement created panic in the market.
Whales Are Selling—Panic Spreads Among Retail Investors. Small investors also start selling.
The same thing happened this time too—heavy sell orders were seen on exchanges like Binance and Coinbase.
4. Regulatory Crackdown in Asia
China and South Korea both announced new regulatory guidelines on 30 May. China has banned crypto mining in some new regions, and South Korea has warned of imposing fines on unregulated crypto wallets.
This news had a direct impact on Asia-based investors. They started panic selling, which also put pressure on the global market.
5.USDT & USDC FUD: Are Stablecoins Losing Trust?
Here is another big reason Crypto Market – fear around Tether (USDT) and USDC. An anonymous crypto analyst claimed that there is an issue with the transparency of Tether’s reserves. Although there was no official confirmation, FUD (Fear, Uncertainty, Doubt) spread in the market.
Loss of trust in stablecoins has a direct impact on the entire crypto ecosystem, as liquidity gets disturbed.
6. Fear Index and Market Sentiment
The Crypto Fear and Greed Index fell to 18 on 31 May, which shows the “Extreme Fear” zone. Whenever the index is so low, it means that people are afraid of investing, and there is uncertainty in the market.
7. Profit Booking Before New Month
Because of 31 May, many investors have booked profit before the monthly close. This is a common pattern, where investors lock their profits at the end of the month.
This puts short-term pressure on the market, and prices go down for some time.
Should we exit the market now?
No. If you are a long-term investor, then these dips can also be an opportunity to invest. Market correction is also healthy. Crypto Volatility Strikes Again—But Should We Really Worry?
Hold On for Dear Life. And today, holding is a smart strategy.
My & Expert Opinions
Michael Saylor: This is just short-term fear. Bitcoin’s long-term target is still intact.
Raoul Pal: Buy on the dip. Ethereum ETF approval has been delayed, not cancelled.
Vitalik Buterin Reacts: Ethereum Layer 2 Growth Won’t Slow Down
I believe that ever since I have been in the crypto market, I have been observing that whenever there is a big whale tweet in crypto, the market falls. Therefore, I believe that managing your investment portfolio properly is the best strategy during a fall.
Final Thoughts – Will the market recover tomorrow?
The market may go down a little more in the short term if the interest rate hike is confirmed. But the overall structure is still strong. ETF approvals, Web3 adoption, and institutional inflows are giving very strong signals that the bull run is not far away.
Just avoid panic selling, and monitor fundamentally strong coins. Altcoin season will come, but with patience and research For more updates on the crypto market,
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Muddu – Crypto Enthusiast & Analyst
Muddu has been actively involved in the crypto world for more than 3 years, closely tracking Bitcoin, altcoins, and emerging blockchain projects. With hands-on experience in crypto trading, market analysis, and following global regulations, he simplifies complex crypto trends into easy-to-understand insights for readers.
Through FastCryptoBuzz, Muddu aims to bring honest, research-driven, and timely crypto updates that help readers stay ahead in the fast-moving digital asset space. His mission is to make crypto knowledge accessible to everyone – from beginners to seasoned investors.
“Crypto is not just about coins, it’s about building the future of finance.” – Muddu