$BTC 1. Geopolitical clouds loom, panic sentiment dominates the cryptocurrency market.

Trump's remarks have intensified the uncertainty in the Middle East, leading to a surge in investors' risk-averse mentality, with a significant outflow of funds from the cryptocurrency market. The prices of mainstream cryptocurrencies collectively dipped in a short time, while altcoins exhibited even larger fluctuations, displaying typical characteristics of 'risk asset sell-off' in response to crisis events, which correlates with the reactions seen in traditional financial markets.

2. Leverage trading amplifies fluctuations, highlighting market vulnerabilities.

Amidst severe market volatility, leveraged positions frequently trigger liquidations, putting pressure on long-position investors as their funds shrink. Although there is a lack of specific data, based on market trading activity and investor sentiment, high-leverage trading has amplified short-term volatility, exposing the cryptocurrency market's vulnerabilities during extreme events, with the risks of blindly chasing price increases and selling at dips significantly rising.