The reasons for the decline in the cryptocurrency market may involve multiple aspects. Here is my analysis:

1. The interest rate cut did not meet expectations:

• Interest rate cuts usually increase market liquidity and drive funds to risky assets, including cryptocurrencies. However, if the rate cut or market reaction does not meet investors' expectations, it may lead to capital outflows and put pressure on the cryptocurrency market.

• In addition, if the rate cut triggers market concerns about the future economy, it may also exacerbate financial market volatility and affect the cryptocurrency market.

2. Powell denies the necessity of holding BTC:

• The statement of Federal Reserve Chairman Powell did have an impact on the cryptocurrency market. He made it clear that the Federal Reserve will not hold Bitcoin and does not intend to include it in its balance sheet, which reflects the Federal Reserve's cautious attitude towards Bitcoin.

• Powell's statement may have eliminated market speculation that the Federal Reserve may directly participate in Bitcoin transactions, but it also reminded investors and market observers that in the field of digital currencies, the importance of regulation and law cannot be ignored.

• This statement may have a certain impact on the cryptocurrency market in the short term, especially for mainstream currencies such as Bitcoin.

3. China may intervene in the control and begin to rectify and regulate the cryptocurrency circle:

• China has always been cautious about virtual currencies and has repeatedly issued policies to crack down on illegal transactions and ICOs. If China does start to strengthen the control of the cryptocurrency circle, it will undoubtedly have a significant impact on the cryptocurrency market.

• Measures such as strengthening exchange supervision, cracking down on illegal financial activities, and promoting central bank digital currencies may reduce market demand and confidence in cryptocurrencies, leading to price declines.

• The KYC measures you mentioned, such as requiring proof of asset sources and uploading income flow, may be in response to regulatory requirements or their own risk control needs. Although this increases the operating costs of users, it may also help improve the standardization and transparency of the market.

In summary, the reasons for the decline in the cryptocurrency circle may involve expectations of interest rate cuts, regulatory policies, and market sentiment.

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