Recently, the cryptocurrency market has experienced a significant round of fluctuations. The price of Bitcoin (BTC) has gradually fallen to around $119,000 after a period of volatility. Meanwhile, Ethereum (ETH) has also shown a clear downward trend, reaching a low of $3,350. Currently, the quotes for these two major cryptocurrencies are around $113,400 and $3,445, respectively.

From a technical analysis perspective, the hourly charts of BTC and ETH show a trend of accelerated downward movement, forming a central axis. Although there may be a slight rebound in the short term, the overall downward trend remains unchanged. The market may need some time for correction and adjustment.

This round of market fluctuations is closely related to the global geopolitical situation. Recent political statements have raised concerns among investors, leading to panic selling in the cryptocurrency market. This event once again proves that even political statements seemingly unrelated to cryptocurrency can have a significant impact on the market.

It is worth noting that the market response this time is not an isolated phenomenon. The cryptocurrency market shows a high correlation with traditional financial markets, especially technology stocks. In the context of increasing political risks, risk assets are generally facing selling pressure. This interconnection highlights the close relationship between the cryptocurrency market and the global macroeconomic environment.

In addition, there have been some noteworthy changes in the cryptocurrency derivatives market. The monthly futures premium has narrowed to about 6%, reflecting a more cautious attitude among investors towards high-risk trading. This may indicate that the market is undergoing a deleveraging process, with investors adjusting their risk exposure.

Overall, the current market environment presents new challenges for cryptocurrency investors. Against the backdrop of a complex and ever-changing global political and economic situation, investors need to assess risks more cautiously and closely monitor various factors that may impact the market. Although the market may continue to face pressure in the short term, the potential of cryptocurrency as an emerging asset class is still worth paying attention to in the long term.