As of April 7, 2025, the price of BTC is approximately 75,400, continuing to face pressure from recent highs, with an intraday decline of more than 9%. Meanwhile, European stock markets have suffered a severe setback: the Euro Stoxx 50 index opened down 6.2%, the German DAX index plummeted 7.1%, the Italian FTSE MIB index fell 7.4%, and the UK FTSE 100 index and Spanish IBEX 35 index decreased by 4.1% and 4.9%, respectively. This correlated decline reflects deep concerns in the global market about the economic outlook.

1. Structural risks in the crypto market

Short-term selling pressure on BTC: On-chain data shows that short-term holders (STH) are increasing their selling behavior, while the proportion of long-term holders (LTH) has increased but is insufficient to offset market panic.

2. Tightening regulatory policies: U.S. regulators are intensifying scrutiny of cryptocurrencies, leading some investors to worry about policy risks and choose to exit.

3. Correlation between traditional financial markets and the crypto market: Although Bitcoin is viewed as a "safe-haven asset" by some investors, its 90-day correlation with the S&P 500 index remains above 0.6, indicating a strong link between the two in the short term.

4. Institutional funds may prioritize redeeming more liquid crypto assets (such as BTC and ETH) amid the stock market crash, putting further pressure on prices. Although BTC rebounded earlier than U.S. stocks during the market crash in 2020, the current market environment is more complex: high global debt levels and escalating geopolitical conflicts may weaken Bitcoin's resilience due to liquidity demands.

5. From a technical perspective, if BTC breaks below the key support level of $75,000, it may trigger a chain of algorithmic trading and leveraged position liquidations, exacerbating downward pressure.

6. Short-term strategy: Focus on defensive allocation

Prioritize holding liquid assets: BTC and ETH, due to their high market acceptance and strong liquidity, have better short-term resilience compared to small and mid-cap tokens.

Avoid high-leverage operations: The current market volatility (with BTC's 30-day volatility exceeding 60%) is prone to triggering liquidation, requiring strict position control.

Note: Maintain cash reserves and avoid emotional trading; if participating in the crypto market, the allocation ratio of mainstream coins (BTC, ETH) should be increased to over 70%, and policy dynamics should be continuously monitored.