According to Bloomberg, Edward Chin of Parataxis said, "The recent market downturn seems like investors are taking profits at the end of the year, and there aren't any fundamental factors that have triggered this sell-off." Due to reduced expectations for a Federal Reserve rate cut in 2025, some investors may be choosing to reduce their exposure and take profits.
Chris Weston, head of research at Pepperstone Group, wrote in a report that "Technically speaking, caution should be exercised in the short term. This does not mean we will see prices plummet soon but the momentum of the uptrend has clearly weakened and buyers have lost their dominant position and control over the market."