Overall Market Review

According to data from the leading encryption asset tracking platform, as of today, the total market value of the encryption market has fallen by nearly 1%, with trading volume dropping by over 15%, reflecting a decrease in short-term market risk appetite. The price of Bitcoin has fallen to the $102,000 range, Ethereum has dropped below $2,400, and the intraday declines of several mainstream currencies are between 3% and 6%, with the overall market sentiment turning conservative.

Macroeconomic impact

Recently, the continuous rise in US bond yields has raised concerns in the market about a high-interest rate environment, intensifying selling pressure on risk assets. In addition, although inflation data has shown a decline, it has not significantly improved market expectations. Some investors choose to play it safe, leading to short-term outflows of funds. The unclear outlook of the Fed’s policy also makes some traders inclined to hold and wait, reducing their willingness to enter the market at high levels.

Technical charts and trading psychology

Image:https://www.gate.io/trade/BTC_USDT

Technically, Bitcoin has failed to break through the $104,000 level multiple times, forming a clear short-term resistance. Once key support is breached, it is easy to trigger a chain reaction of stop-loss or liquidation, causing a rapid acceleration in prices. On-chain data shows a significant increase in long liquidation in the past 24 hours, reflecting a blow to market bullish confidence. In addition, net outflows of ETF products also indirectly verify the temporary wait-and-see attitude of institutional funds.

Policy and Regulatory Updates

Although Coinbase is about to be included in the S&P 500 Index, which is a symbol of the mainstream financial system’s recognition of the crypto industry in the long run, it has not boosted the overall market in the short term. On the one hand, stablecoin regulations in the United States have not yet been finalized, leading to uncertainty about the direction of policies in the market. On the other hand, a new round of scrutiny of crypto platforms by some countries has increased regulatory risks, affecting market confidence.

Beginner’s operating advice and outlook for the future

In the face of the current market adjustment, novice investors should not panic blindly. It is recommended to pay attention to the support of Bitcoin around $100,000 and the performance of Ethereum around $2,300. If the support is effective, consider buying in small batches at a low price; if it falls below the key level, stop loss in time and control risks. At the same time, pay close attention to the macroeconomic data such as U.S. PCE and GDP to be released this week, which will directly affect market risk appetite. In the medium and long term, if the policy negatives are exhausted and institutional funds return, the market is expected to regain strength.

Conclusion: The short-term fluctuations in the market are common, but rational analysis and steady operations can take you further in the crypto world. Hopefully, this article has provided you with clear clues and references to understand why the crypto market is down today.