1. U.S. Treasury yields soar: the 10-year Treasury hits 4.58% (highest since December), market expectations for rate cuts are nearly zero, and fears of rate hikes are reignited; high-yield risk-free assets attract funds to exit the crypto space.



2. Inflation data exceeds expectations: U.S. April CPI year-over-year at 3.8% (three-year high), combined with tensions in the Middle East and oil prices breaking $100 per barrel, inflationary pressures resurface, the Federal Reserve is forced to maintain high interest rates, and risk assets are broadly sold off.

3. Capital outflows + ETF reductions: On May 13, U.S. spot Bitcoin ETF net outflows of $630 million, institutional funds shift to bonds and cash, liquidity in the crypto market significantly contracts.

Factors behind the recent continuous decline
Long-term outlook remains bullish, short-term currently bearish
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