Crypto Market Sees Significant Correction in Two Days

The crypto market has recently experienced a significant correction, with the total capitalization dropping by $176 billion in just two days.

This decline was primarily driven by Bitcoin's price fall of approximately 9%, which triggered nearly $1.5 billion in liquidations on derivatives markets.

Several indicators observed before the correction showed signs of weakening demand among institutional investors, including a decline in U.S. spot Bitcoin ETFs and changes in correlations between financial markets.

The correction has raised questions about the future of the crypto cycle, with some observers viewing it as a classic purge after several months of increase, while others consider it a sign of more challenging times for cryptos.