Analysis: Multiple factors led to today’s decline in the crypto market, including rising risk aversion and net outflows of Bitcoin spot ETF funds.

Cointelegraph published an article analyzing the reasons for today’s decline in the encryption market: 1. Rising risk aversion: Bitcoin and the rest of the cryptocurrency market fell today as stronger-than-expected U.S. manufacturing data reduced market bets on the Federal Reserve’s monetary policy easing. 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. Bitcoin spot ETFs saw net outflows of $85.7 million on April 1, according to data from Farside Investors. The decline in Bitcoin ETF inflows points to lower 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 market's weekly Relative Strength Index (RSI) crossed overbought levels of 70, a sign of stretched valuations and leading to waning trader interest. Additionally, the historical resistance range of $2.57-$3.02 trillion in market capitalization also limits the market's 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, including $343 million in long positions.