The decline of SOL ecosystem meme coins is the main reason. Why is the crypto market falling?

The SOL ecosystem has attracted much attention because of the popularity of meme coins, and a large amount of funds have poured in. But as the popularity faded, investors evacuated one after another. The prices of many meme coins plummeted and a large amount of funds were withdrawn, which directly affected the overall activity of the SOL ecosystem, which led to the outflow of funds in the crypto market, becoming one of the important factors in the decline of the crypto market.

The Bybit hacking has sparked panic in the market. Investors have seriously questioned the security of cryptocurrency trading platforms and have reduced their investment in the crypto market. Once the platform's security issues are exposed, investors will worry about the security of their assets, which will frustrate market confidence and lead to a decline in the price of the crypto market.

As an important weather vane in the global financial market, the decline of the US stock market has a huge impact on the crypto market. When US stocks fall, investors will transfer funds from the high-risk crypto market to the relatively stable traditional financial market for safe-haven demand, resulting in a decrease in the amount of funds in the crypto market, thereby driving the price of cryptocurrency downward.

From the perspective of technical indicators, the cryptocurrency market has accumulated a certain profit order after the previous rise. There is a technical need for a pullback. When various technical indicators show an overbought state, investors will choose to sell their cryptocurrencies, triggering market price adjustments and prompting the crypto market to enter a downward phase.

As uncertainty in the global economic situation increases, investors' acceptance of risks is reduced. Due to its high-risk attributes, the crypto market has become the target of investors' reduction in holdings. The decline in the overall risk appetite of the market has made the crypto market lack the continuous inflow of funds, making it difficult for the price to maintain a high level, and then fall.

Overall, the ebb of SOL Ecological Meme Coin Speculation has caused a large amount of funds to flow out of the crypto market, the Bybit hacking incident has damaged market confidence, the decline in US stocks has triggered a risk-averse transfer of funds, the pullback of technical indicators has prompted investors to sell, and the overall market risk preference has declined, leading to funds Inflows decreased, and these factors intertwined, jointly driving the decline in the crypto market.