NEAR Takes Hit as Macro Factors Send Crypto Market Reeling
The cryptocurrency market recently experienced a correction due to macroeconomic factors, leading to a decline in various assets. The NEAR token was among those affected, dropping approximately 7.5% over a 24-25 hour period.
This drop is attributed to an overcrowded long trade being flushed out during the broader crypto pullback. The timing of the decline coincides with a wider market correction, which saw the total crypto market cap fall by about 3.2%, and altcoin market cap decrease by around 1.1%.
The macroeconomic factors driving this correction include the increase in US Treasury yields back above 5% after strong US PMI data. This has raised expectations of further Federal Reserve tightening, leading to a risk-off rotation in global markets, including cryptocurrencies, equities, gold, and silver.
NEAR's recent rally, which saw it gain around 81% between September 13th and September 20th, made it particularly vulnerable to the correction. The token's derivative side became extremely crowded during this period, with high RSI, funding, and open interest.