Why crypto going down

The cryptocurrency market is experiencing a downturn due to a combination of factors:

1. **Trump's Restrictions on Nvidia**: The imposition of new restrictions on Nvidia's chip exports to China has contributed to the decline in the crypto market. This has led to a slump in the tech sector and has affected the broader risk market, including cryptocurrencies.
2. **Potential Bitcoin Dump by China**: Reports suggest that China may offload its Bitcoin assets, which could lead to a significant sell-off and contribute to the market's decline. This would be a reversal of the US's strategy to use Bitcoin as national reserves.
3. **Crypto Liquidations**: There have been liquidations in the futures market, totaling $245.37 million in the last 24 hours. This indicates a decrease in market activity and can contribute to downward pressure on cryptocurrency prices.
4. **Weakening Technicals**: The crypto market is experiencing weakening technicals, which can signal a lack of buying momentum and contribute to a bearish trend.
5. **Geopolitical Tensions**: Escalating tensions between Israel and Iran have created geopolitical uncertainty, leading to a risk-off sentiment among investors. This has prompted investors to reduce their exposure to risk assets, including cryptocurrencies.
6. **Iranian Exchange Hack**: The cyberattack on Iran's largest digital asset exchange, Nobitex, has resulted in the loss of approximately $82 million. This adds to the market's pressure and can contribute to a decline in cryptocurrency prices.
7. **Sector-Wide Losses**: The cryptocurrency sector has suffered significant losses due to hacks, fraud, and security breaches in the first half of the year. This has led to a total loss of over $2.2 billion, surpassing the losses recorded in 2024.
8. **Market Fears and Technical Indicators**: The crypto market is experiencing underlying market fears and technical bearish indicators. Bitcoin dominance has climbed above 65%, and BTC has entered a critical supply zone, which could be contributing to the market's decline.
9. **U.S. Military Airstrike**: A recent U.S. military airstrike on Iranian nuclear facilities has led to liquidations exceeding $1 billion in the cryptocurrency market. This event has caused volatility in Bitcoin prices, ending its 44-day streak above $100,000.

In summary, the crypto market is under pressure from a combination of geopolitical tensions, technical indicators, sector-wide losses, and market fears. These factors are contributing to a decline in cryptocurrency prices and a risk-off sentiment among investors.