Today, the most critical event in the cryptocurrency sector is the significant decline across the cryptocurrency market, primarily driven by geopolitical tensions and rising macro risk aversion sentiment.
Bitcoin (BTC) price: briefly dropped below $86,500, with a 24-hour decline of over 3%.
Ethereum (ETH) price: briefly fell to around $2,800, with a 24-hour decline of over 5%.
Total market capitalization: has fallen below $3 trillion.
Liquidation situation: In the past 24 hours, over 200,000 investors across the network have been liquidated, with a total liquidation amount of approximately $664 million, over 85% of which were long positions.
This decline is primarily driven by external macro risk events, referred to by the market as the three major "black swan" events:
1. US-Canada trade friction: Former US President Trump threatened to impose a 100% tariff on Canadian goods, exacerbating market concerns about global trade.
2. Expectations of forex market intervention: The Federal Reserve Bank of New York inquired with banks about the cost of yen conversion, triggering speculation in the market that the US might intervene in the forex market to support the yen, leading to a weaker dollar and market volatility.
3. Geopolitical tensions in the Middle East: The US aircraft carrier strike group has arrived in the Middle East, escalating regional tensions.
Under the influence of these factors, the prices of traditional safe-haven assets (such as gold and silver) have surged, while the "safe-haven attributes" of cryptocurrencies like Bitcoin have not materialized, with funds flowing out of risk assets.
· Active buyers: A large whale address accumulated over 70,000 ETH (worth over $200 million) in the past 5 days; projects supported by the Trump family have also converted some Bitcoin into Ethereum.
· Potential sellers: An early whale address that had been silent for 9 years transferred 50,000 ETH to exchanges, which may signal a readiness to take profits.
· Regulatory and adoption progress: At the World Economic Forum in Davos, crypto assets continue to attract attention from traditional finance. Meanwhile, the market is focused on the legislative progress of the US cryptocurrency market structure bill. Japan is reportedly considering lifting the ban on cryptocurrency spot ETFs by 2028.
Today, the cryptocurrency sector was impacted by external macro political and economic events, resulting in panic selling and a large number of long liquidations. However, whale funds show divergence during the decline, indicating that internal market judgments about the future are not consistent. $XAG $XAU
