Crypto Market Selloff Driven by Traditional Finance, Not Crypto Crisis | Analysis

The recent downturn in cryptocurrency prices was primarily a Traditional Finance (TradFi) event rather than a fundamental crypto crisis, according to market analysts. The selloff was triggered by macroeconomic factors and volatility in traditional markets, including shifting interest rate expectations and equity market corrections. Key cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) mirrored moves in risk assets like tech stocks, highlighting their growing correlation. Experts note that the crypto ecosystem's core infrastructure, including major blockchains and decentralized finance (DeFi) protocols, remained stable and operational throughout the volatility. This resilience suggests that the sell pressure originated from external, macro-driven liquidations rather than internal failures, hacks, or protocol issues specific to the crypto space. The event underscores the asset class's maturation and increasing integration with global financial systems.