One reason suggested for the market drop is minor capitulation, but this isn't convincing. The recent market performance isn't tied to the Bitcoin halving in April. Although cryptocurrency mining firms saw their revenues drop by 55% due to the halving, industry experts expected these changes. So, we can rule out this reason.
The most likely reason seems to be significant outflows from Bitcoin ETFs managed by firms like BlackRock and Fidelity. Large-scale selling can impact prices, especially if selling volume exceeds buying volume.
The SEC's chief officer, who enforced cryptocurrency regulations, has stepped down. His departure might have caused uncertainty, contributing to the market dip. His replacement might bring more favorable conditions for the market, potentially restoring confidence and stability.
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