The main reasons for the recent cryptocurrency market correction stem from the combination of macroeconomic factors and industry-specific risks:

1. Tightening macro liquidity: The U.S. CPI data exceeded expectations, intensifying market concerns about the Federal Reserve delaying interest rate cuts, leading to a stronger dollar index that suppresses risk assets. Cryptocurrencies like Bitcoin are particularly affected due to high volatility;

2. Pressure from the industry chain: The imminent repayment to Mt. Gox creditors (valued at approximately $9 billion in BTC) has triggered panic in the market regarding potential sell-offs, compounded by the German government's transfer of Bitcoin to exchanges, putting short-term liquidity under pressure;

3. Derivative leverage liquidation: After Bitcoin fell below the key psychological support level of $60,000, long positions in the derivatives market (approximately $2 billion) faced forced liquidation, creating a "long kill long" spiral;

4. Deteriorating sentiment: The Fear and Greed Index plummeted to "extreme fear," with retail investors amplifying sell-offs, causing altcoins to generally retreat by 30%-50%, and funds shifting towards stablecoins for hedging.

Market outlook: In the short term, it is necessary to hold the $58,000 support; otherwise, a drop to $53,000 (200-day moving average) may occur. In the medium term, if the Federal Reserve releases dovish signals or institutions buy on dips, a rebound could happen, but regulatory uncertainties (such as the SEC lawsuit) remain a concern. Investors are advised to manage their positions and remain cautious, avoiding leveraged bottom-fishing.