The recent sharp drop in the encryption market was mainly due to risk-aversion sell-offs triggered by the intensification of geopolitical conflicts in the Middle East, along with tightened macro liquidity and a derivatives liquidation cascade.

This plunge is the concentrated release of three major negative factors: geopolitical tensions, macro policy, and leverage liquidation cascades:
1. Escalation of geopolitical conflict (core trigger)
The U.S.-Iran negotiations broke down. Iran announced restrictions on passage through the Strait of Hormuz, and U.S. forces intercepted Iranian merchant vessels in the Gulf of Oman. Meanwhile, Israel launched attacks in southern Lebanon, killing a senior Hezbollah commander. International oil prices surged by more than 7% in a single day, with funds flowing from high-risk assets into gold and crude oil for safe-haven.
2. Macro liquidity tightening
The Federal Reserve remains hawkish. Officials hinted that it is not excluded that there will be no rate cuts throughout all of 2026. The probability of keeping rates unchanged in April is as high as 98.4%. Market expectations of rate cuts were completely dashed, and tightened U.S. dollar liquidity suppressed crypto valuations.
3. Funding and leverage liquidation cascades
· Institutional withdrawals: US spot Bitcoin ETFs saw net outflows of $291 million during April 18–19, sharply increasing selling pressure.
· Chain liquidations: Bitcoin fell below the $75k psychological level, triggering quantitative stop-losses. In the past 24 hours, more than 200,000 traders were liquidated across the entire market, with the amount reaching $317 million. The perpetual contract funding rate turned negative, and crowded shorts intensified the downward momentum.
#山寨币强势反弹
$ETH $GT $0G