Bitcoin is under pressure with a pullback and convergence of volatility, while Ethereum shows a slight increase; cautious observation is recommended for short-term positions. Market key points interpretation: Current macro and on-chain signals intertwine, with significant divergence in volatility and direction. The CBOE volatility index has risen to a two-week high, indicating heightened market risk aversion; U.S. stocks have fallen for consecutive days (S&P -1%, Nasdaq -1.85%) and expanded their declines, as investors express doubts about high valuations, adding external pressure to risk appetite 📉. The short-term decline of the U.S. dollar index (DXY down) provides some support for risk assets, but political and regulatory uncertainties (Trump considering firing Federal Reserve members, the Justice Department's criminal investigation into Cook) raise market unpredictability ⚖️. On-chain and institutional dynamics: CryptoQuant shows that while the strategy side's increased holdings are not a bottom signal, they help boost market sentiment; the destruction of 50 million USDC reduces liquidity, theoretically slightly benefiting the relative attractiveness of stablecoins to cryptocurrency assets; a certain whale withdrew 2,200 ETH (≈9.15 million USD), which may reflect private equity/long-term holding or a reallocation to cold wallets 🐳. Meanwhile, several institutions and projects have completed financing (Bitcoin collateralized mortgages, LM Funding increasing Bitcoin holdings), indicating sustained institutional demand 🏦. Short-term outlook and trading strategy: Bitcoin ($113,475.77, 24h -0.52%) is consolidating under pressure, while Ethereum ($4,211.16, 24h +0.12%) remains relatively stable. It is recommended to focus on range trading in the short term, strictly control positions and stop losses, with key attention to: U.S. stock sentiment, Federal Reserve officials' speeches/labor market data, dollar trends, and on-chain movements of large holders/stablecoins 📊. A one-sentence summary of the current overall trend in the cryptocurrency market: Risk appetite is under pressure, volatility is rising, short-term fluctuations are weak but there is limited support from the dollar's retreat and institutional demand.