On April 2nd, the overall market continued its rally then pulled back, with mainstream cryptocurrencies collectively weakening and risk appetite significantly shrinking.

• BTC: Quoted at $66,413, with an intraday high of $69,170 and a low of $66,395, approximately a 2.47% decline for the day, returning to the lower end of the $65,000-$68,000 fluctuation range.

• ETH: Quoted at $2,051, with an intraday high of $2,163 and a low of $2,050, approximately a 2.69% decline for the day, breaking below the key support level of $2,100.

• Market characteristics: High-volatility risk assets are being sold off intensively, with BTC/ETH leading the decline. Altcoins like SOL and BNB experienced more significant drops (SOL down over 5.4%), as funds flow back into core assets, while the altcoin sector’s liquidity remains under pressure.

📢Core Market Analysis

Today's market fluctuations are driven by dual factors: escalating geopolitical conflicts and shifting macro expectations, specifically:

1. Geopolitical conflicts ignite risk-averse sentiment
Trump commented on the Iran situation, without specifying a ceasefire timeline, stating that military actions will continue in the coming weeks. Following the announcement, Brent crude surged 5% to $106.16 per barrel, and the US dollar index rose to 99.925, putting global stock markets and risk assets under pressure. The International Energy Agency warned that disruptions in Middle Eastern oil supplies could worsen, potentially impacting Europe's economy in April. Rising inflation expectations, sensitive to liquidity, directly suppress the crypto market.

2. Macro policies and data reinforce cautious sentiment
Musalem, the President of the St. Louis Fed, stated that there is no need to adjust monetary policy at present, and energy-related inflation could keep inflation above target for a long period, cooling expectations for rate cuts. Additionally, the ADP report showed that US private employment increased by 62,000 in March (above the expected 40,000), and markets generally anticipate strong non-farm payroll data on Friday. Traders are reducing leverage and waiting for the data to materialize rather than aggressively chasing gains.

3. Industry events intensify sector divergence
DeFi project DRIFT Protocol was hacked, with approximately $285 million worth of assets stolen, later exchanged for 129,000 ETH, sparking panic about the DeFi ecosystem. Funds are rapidly withdrawing from public chains and altcoin sectors. Meanwhile, Bitcoin treasury company EmperyDigital transferred 1,795 BTC (worth about $120 million) to Gemini. Although this is a single institutional action, it further confirms the market’s passive reduction of core assets.