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Current Status and Outlook of the Crypto Market

Recently, Bitcoin broke its range-bound trading, falling below $90,000 for the first time in a month, currently hovering below that price point, triggering over $200 million in liquidations within a few hours.

Trump has imposed tariffs on Canada and Mexico and restricted investments from China, continuing to dampen market sentiment. Bitcoin's price has declined, and short-term option hedging activities have increased, with one-month implied volatility rising to 50, while the option skew has remained largely unchanged.

From a macro perspective, the stock, fixed income, and gold markets have digested adverse data impacts and are stabilizing, while Bitcoin remains sideways. Bitcoin's market capitalization share has increased, while altcoin prices have declined, suggesting that altcoin bulls may be fully loaded, and new USD funds are only flowing into Bitcoin.

Currently, Bitcoin demand relies on institutions like MicroStrategy and Metaplanet, which are financing through issuing equity-linked notes. Over the past 14 months, cryptocurrency-related issuances accounted for 19% of total issuance, and the financing market may be nearing saturation, which could suppress the market's subsequent performance.

Follow me for more information and insights about the crypto space.

The cryptocurrency market is sluggish; what does the future hold?

Currently, the cryptocurrency market is bleak. Bitcoin has fallen below the 90,000 yuan mark today, with altcoins experiencing a steep decline.

The performance of the US macro-financial environment has a significant impact on the cryptocurrency market, raising concerns about whether Bitcoin has entered a bear market and future opportunities. The reasons for the sluggish cryptocurrency market are issues with the US stock market and macro policies. Trump maintains tariffs on Canada and Mexico, undermining market confidence. Progress on the US Bitcoin Strategic Reserve Bill has been slow, with related proposals in South Dakota and Montana being rejected or shelved. Expectations of a US dollar interest rate cut have fallen through, leading to liquidity tightening, continuous net outflows from Bitcoin ETFs, and a sluggish market.

Over 500,000 ETH were stolen from Bybit, and the anticipated rebound from repurchases did not meet expectations. Although the gap has been filled, hackers continue to launder and sell off, suppressing Ethereum prices. Altcoins are also deeply trapped in a bear market due to ecological stagnation, unlocking, and other issues.

Last year's meme coin frenzy peaked with the Trump couple issuing coins, which later crashed due to celebrity followings, leading to a trading volume drop of over 80%. Solana and its ecological tokens plummeted, retail investor enthusiasm was dampened, and market sentiment recovery will take time.

From the perspective of gold's rise, the market is fundamentally bearish on the US dollar, which supports Bitcoin in the long term, but there are risks of capital outflows in the short term. Conservative investors can wait for leveraged events, such as buying the dip if Bitcoin falls to 70,000 yuan. Additionally, the Federal Reserve's policies are crucial; changes in monetary policy could trigger trends in the cryptocurrency market, and a significant drop forcing the Fed to loosen monetary policy may bring about a turnaround.

The cryptocurrency market is sluggish; what does the future hold?

Currently, the cryptocurrency market is bleak. Bitcoin has fallen below the 90,000 yuan mark today, with altcoins experiencing a steep decline.

The performance of the US macro-financial environment has a significant impact on the cryptocurrency market, raising concerns about whether Bitcoin has entered a bear market and future opportunities. The reasons for the sluggish cryptocurrency market are issues with the US stock market and macro policies. Trump maintains tariffs on Canada and Mexico, undermining market confidence. Progress on the US Bitcoin Strategic Reserve Bill has been slow, with related proposals in South Dakota and Montana being rejected or shelved. Expectations of a US dollar interest rate cut have fallen through, leading to liquidity tightening, continuous net outflows from Bitcoin ETFs, and a sluggish market.

Over 500,000 ETH were stolen from Bybit, and the anticipated rebound from repurchases did not meet expectations. Although the gap has been filled, hackers continue to launder and sell off, suppressing Ethereum prices. Altcoins are also deeply trapped in a bear market due to ecological stagnation, unlocking, and other issues.

Last year's meme coin frenzy peaked with the Trump couple issuing coins, which later crashed due to celebrity followings, leading to a trading volume drop of over 80%. Solana and its ecological tokens plummeted, retail investor enthusiasm was dampened, and market sentiment recovery will take time.

From the perspective of gold's rise, the market is fundamentally bearish on the US dollar, which supports Bitcoin in the long term, but there are risks of capital outflows in the short term. Conservative investors can wait for leveraged events, such as buying the dip if Bitcoin falls to 70,000 yuan. Additionally, the Federal Reserve's policies are crucial; changes in monetary policy could trigger trends in the cryptocurrency market, and a significant drop forcing the Fed to loosen monetary policy may bring about a turnaround.

What caused the crypto market to plummet this time?

There are multiple factors behind the sharp drop in cryptocurrency prices:

US stocks and macroeconomics: The US stock market continues to be sluggish, and Chinese stocks have plummeted due to the impact of Trump's signing of an investment policy memorandum. At the same time, employment data has reduced expectations for multiple interest rate cuts in 2025, and the Federal Reserve is likely to keep interest rates unchanged in future meetings. The uncertainty of monetary policy has made investors more cautious about risky assets such as cryptocurrencies.

Internal impact of the industry: On February 21, the Bybit cryptocurrency exchange was hacked, losing more than $1.4 billion in ETH and related tokens, triggering market panic, and investors' selling exacerbated price declines.

Investor sentiment and capital flows: Digital asset investment products have seen capital outflows for two consecutive weeks, with Bitcoin outflows of $571 million, and institutional investors have reduced their investments. The inauguration of the US president brought uncertainty about trade tariffs, inflation and monetary policy, making investors cautious.

In addition, the cryptocurrency market faces huge overhead resistance, the market value is in adjustment, and the key support area has turned to pressure. Analysts say the market is in a neutral period and investors are cautious in making decisions.

Follow me and I will take you to learn more information and advice about the cryptocurrency world.

What caused the crypto market to plummet this time?

There are multiple factors behind the sharp drop in cryptocurrency prices:

US stocks and macroeconomics: The US stock market continues to be sluggish, and Chinese stocks have plummeted due to the impact of Trump's signing of an investment policy memorandum. At the same time, employment data has reduced expectations for multiple interest rate cuts in 2025, and the Federal Reserve is likely to keep interest rates unchanged in future meetings. The uncertainty of monetary policy has made investors more cautious about risky assets such as cryptocurrencies.

Internal impact of the industry: On February 21, the Bybit cryptocurrency exchange was hacked, losing more than $1.4 billion in ETH and related tokens, triggering market panic, and investors' selling exacerbated price declines.

Investor sentiment and capital flows: Digital asset investment products have seen capital outflows for two consecutive weeks, with Bitcoin outflows of $571 million, and institutional investors have reduced their investments. The inauguration of the US president brought uncertainty about trade tariffs, inflation and monetary policy, making investors cautious.

In addition, the cryptocurrency market faces huge overhead resistance, the market value is in adjustment, and the key support area has turned to pressure. Analysts say the market is in a neutral period and investors are cautious in making decisions.

Follow me and I will take you to learn more information and advice about the cryptocurrency world.

What caused the crypto market to plummet this time?

There are multiple factors behind the sharp drop in cryptocurrency prices:

US stocks and macroeconomics: The US stock market continues to be sluggish, and Chinese stocks have plummeted due to the impact of Trump's signing of an investment policy memorandum. At the same time, employment data has reduced expectations for multiple interest rate cuts in 2025, and the Federal Reserve is likely to keep interest rates unchanged in future meetings. The uncertainty of monetary policy has made investors more cautious about risky assets such as cryptocurrencies.

Internal impact of the industry: On February 21, the Bybit cryptocurrency exchange was hacked, losing more than $1.4 billion in ETH and related tokens, triggering market panic, and investors' selling exacerbated price declines.

Investor sentiment and capital flows: Digital asset investment products have seen capital outflows for two consecutive weeks, with Bitcoin outflows of $571 million, and institutional investors have reduced their investments. The inauguration of the US president brought uncertainty about trade tariffs, inflation and monetary policy, making investors cautious.

In addition, the cryptocurrency market faces huge overhead resistance, the market value is in adjustment, and the key support area has turned to pressure. Analysts say the market is in a neutral period and investors are cautious in making decisions.

Follow me and I will take you to learn more information and advice about the cryptocurrency world.

骚哥专属福利聊天室点此立即进
The quota is limited and will be full soon. I am finally back to the computer. I am sending a 🧧
After a busy day, I am finally back to the computer. I didn’t expect that my assets would shrink so much!
It is already 2025, and the market is still so volatile!
This is not a good thing for the orderly entry of capital!
骚哥2
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