Today, the crypto market has experienced a sharp decline with many influencing factors. Here are the key factors:
1. **Bitcoin Volatility**: Bitcoin price has dropped sharply without the impact of Bitcoin ETFs. This caused panic and sell-off across the market.
2. **Correlation with USD index (DXY)**: The crypto market has lost its negative correlation with the USD strength index, making it difficult for investors to predict trends.
3. **Cash flow out of the market**: Many investors have withdrawn money from the crypto market and switched to other investment channels such as stocks².
4. **Huge liquidation loss**: This is the largest liquidation loss since the collapse of FTX to date, causing huge loss to investors.
5. **Unusual Technical Signals**: Technical signals are predicting Bitcoin to enter a downtrend, adding to investor anxiety.