The latest dynamics of the cryptocurrency market are as follows:

Significant Price Fluctuations

- First Decline, Then Rise, Then Decline: Bitcoin's price first fell below $80,000 on February 27. Following Trump's statement on March 2 about advancing the establishment of a cryptocurrency reserve including Bitcoin, Bitcoin briefly rose to $95,000. However, a sharp decline occurred again on March 4.

- Mainstream Cryptocurrencies Decline: Ethereum plummeted 16% on March 4, falling to $2,100; Solana crashed to $143.05 after the decline on March 4.

Policy Impact

- Trump's Cryptocurrency Policy: On March 2, Trump announced the inclusion of XRP, SOL, and ADA into the U.S. cryptocurrency reserve, causing the prices of related cryptocurrencies to soar. The White House will also hold its first cryptocurrency summit on March 7 to discuss topics such as regulatory policy simplification, stablecoin management, and Bitcoin reserve plans.

- Ongoing Regulatory Concerns: The market worries that the new cryptocurrency regulatory framework from the Trump administration may restrict institutional holdings of crypto assets, leading to panic selling by investors.

Capital Flow

- ETF Capital Outflow: Since late February, Bitcoin ETFs have seen significant outflows, with February's Bitcoin index fund experiencing $3.4 billion in capital outflow.

- Return of Traditional Financial Capital: Recent data shows that cryptocurrency ETPs experienced their first net outflow in 19 weeks, amounting to $415 million, indicating a clear trend of capital returning to traditional sectors such as the stock market.

Impact of Security Incidents

The world's second-largest crypto service provider, CEX Bybit, suffered a hacker attack in February, with $1.46 billion worth of Ethereum stolen by hackers. This incident intensified the panic among market participants and raised concerns about the security of digital tokens on trading platforms.