Odaily News Cointelegraph published an article analyzing the reasons for todays decline in the crypto market: 1. Rising risk aversion: As U.S. manufacturing data was stronger than expected, the market reduced its bets on the Feds monetary policy easing, causing Bitcoin and other cryptocurrency markets to fall today. 2. Bitcoin Spot ETFs Again See Net Outflows: Today’s decline in the cryptocurrency market coincides with reduced inflows into U.S. Bitcoin Spot ETFs. According to data from Farside Investors, the net outflow of Bitcoin spot ETF funds on April 1 was US$85.7 million. The decline in Bitcoin ETF inflows indicates a reduction in investor risk appetite. 3. Overbought pullback: Today’s crypto market decline is part of a broader pullback that began on March 14, when the market hit a local high of around $2.72 trillion. The pullback comes after the markets weekly Relative Strength Index (RSI) crossed overbought levels of 70, signaling overvaluation and leading to waning trader interest. In addition, the historical resistance range of $2.57-3.02 trillion market capitalization also limits the markets attempts to rise. At the same time, the Net Unrealized Profit and Loss (NUPL) indicator rose sharply into the Belief zone. Historically, NUPL values ​​rarely remain unchanged after exceeding 0.6, and a significant price correction is usually followed. So, with a clear pullback in March, a broader decline may have begun. 4. Long Liquidations Exacerbating Sell-Offs: The sharp decline in cryptocurrency prices triggered a large number of long liquidations in the derivatives market, catching bullish traders off guard and leading to a rapid round of liquidation of long positions. In the past day, the crypto market liquidated more than $428 million, of which long orders liquidated $343 million.