Major U.S. indices such as the S&P 500, Nasdaq, and Russell 2000 moved lower, and crypto markets often follow the same direction, especially during uncertain economic periods.As prices started falling, leveraged traders were forced to close positions, causing additional selling pressure and faster price declines.A recent report from Grayscale Investments said that Bitcoin is currently moving more like high-growth technology stocks rather than a traditional safe-haven asset such as gold. This means that when technology stocks face pressure, crypto prices often fall as well.
Oversold signals appear
Despite the sharp drop, some technical indicators show that the market is approaching oversold levels, which sometimes leads to short-term rebounds. However, analysts warn that volatility may continue until investors regain confidence and buying demand returns.
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