The cryptocurrency market today is engulfed in red

Today's cryptocurrency market witnessed a volatile trading session, with red dominating across the board. Bitcoin (BTC) has dropped nearly 5%, trading around $95,000, while Ethereum (ETH) fell over 6%, below $1,800. Major altcoins like Binance Coin (BNB), Solana (SOL), and Cardano (ADA) also recorded declines of 5-8%.

Trading volume has decreased, reflecting investors' cautious sentiment. The Fear and Greed Index has fallen to the 'Fear' level, indicating increased anxiety in the community.

Main causes

1. Fed's interest rate policy: Pressure from the prediction of the Fed raising interest rates is causing risky assets like cryptocurrencies to depreciate.

2. Liquidation of large positions: Long positions in the derivatives market have been liquidated, triggering a sell-off.

3. Cautious sentiment: Global stocks have plummeted, dragging pessimism into the crypto market.

4. Lack of new capital: Both institutional and individual investors are cautious, leading to reduced liquidity.

Trend analysis

1. Bitcoin: Likely to retest the support zone of $90,000 - $92,000; if broken, prices may decline further.

2. Ethereum: Risk of falling below $1,750 if there is no new buying force.

3. Altcoin: Declining more sharply as capital exits risky assets.

4. Stablecoin: More actively traded, reflecting a safe-haven trend.

Overall, the market is under pressure from macroeconomic factors and investor sentiment. Tomorrow, the possibility of recovery depends on new capital flows and improvements in sentiment. Investors should manage risk and closely monitor fluctuations.$BTC $ETH