The cryptocurrency market has experienced a sudden storm, with the top ten cryptocurrencies by market capitalization all falling, resulting in a total market cap decrease of $362 billion, now maintaining around $3.17 trillion. Behind this significant drop are the sharp increase in market volatility and the interplay of multiple adverse factors.

As the market leader, Bitcoin's price fluctuations have been particularly severe, oscillating dramatically between $92,000 and $98,600 within just 24 hours. Other major cryptocurrencies such as Ethereum and Solana have also been affected, dropping 4.2% and 8.9% respectively, leaving the market bleak.

What is even more concerning is that the surge in liquidations has dealt a heavy blow to the market. In just one day, long traders lost over $692 million, with leveraged traders suffering even more, facing liquidation amounts as high as $578.5 million. The BTC/USDT pair on the Binance platform saw a single liquidation order as high as $4.67 million, undoubtedly exacerbating market panic.

A large number of impending derivatives are also putting significant pressure on the market. Bitcoin options worth $9.4 billion and Ethereum options worth $1.3 billion are set to expire soon, causing traders to adjust their positions, further intensifying market volatility. At the same time, the net outflow from Bitcoin ETFs reflects the growing divergence in market views and rising cautious sentiment.

Despite the market sentiment still being relatively strong, the decline in the cryptocurrency fear and greed index also indicates the presence of cautious sentiment. Many traders have chosen to cash out after recent gains, increasing selling pressure in the market. In the long run, the market adjustment may only be temporary, and the future of cryptocurrencies remains full of opportunities and challenges. Buy the dip!