The cryptocurrency market has been going through a turbulent period, especially the sharp drop in the price of Bitcoin, which has caused widespread concern in the market. As the leader of the cryptocurrency market, the price fluctuations of Bitcoin often have a profound impact on the entire market. Last week, the price of Bitcoin closed down, falling below $67,000, which severely hit market sentiment. Previously, Bitcoin had tried to break through its recent historical highs, but failed, and instead experienced a sharp correction.
As the price of Bitcoin falls, the fear index of the entire cryptocurrency market continues to rise. The altcoin industry follows closely, showing a general downward trend. This chain reaction is not uncommon in the cryptocurrency market, because the price movement of Bitcoin is often regarded as a vane for the entire market. Therefore, when the price of Bitcoin falls, other digital assets are usually affected.
In this context, more than $92 million has been withdrawn from cryptocurrency derivatives trading in the past 24 hours. This figure reflects investors' pessimistic expectations for the future market trend and the actions they take to avoid potential risks. Among them, most of the withdrawn funds involve long traders, which further exacerbates the downward pressure on the market.
At the same time, analysis of on-chain data also provides us with some clues about market dynamics. According to data provided by CryptoQuant, average inflows across all stablecoins have dropped by more than half to $40 billion. The significant drop in stablecoin trading volume is seen by on-chain and macro researcher Axel Adler as a bearish signal for the entire crypto market. He believes this reflects a decline in overall purchasing power and a reduction in much-needed liquidity amid heightened market volatility.
Adler also pointed out that the bullish sentiment in the market will not completely disappear until the stablecoin trading volume falls below $30 billion. This means that despite the current low market sentiment, some investors still have hope for the future recovery of the market.
From a macro perspective, in the more than two months since Bitcoin’s fourth halving, institutional adoption has continued to rise with the approval of multiple spot BTC ETFs in different jurisdictions. This trend should have had a positive impact on the market, but Grayscale's GBTC has seen significant cash outflows so far this year, which has seriously affected the market's bullish sentiment.
The cryptocurrency market is currently at a critical turning point. The collapse of Bitcoin prices, the decline in stablecoin trading volume, and the cash outflow of GBTC have combined to create a haze in the market. As Adler said, the bullish sentiment in the market may still recover before the stablecoin trading volume falls below a certain key level.
The cryptocurrency market has been going through a turbulent period, especially the sharp drop in the price of Bitcoin, which has caused widespread concern in the market. As the leader of the cryptocurrency market, the price fluctuations of Bitcoin often have a profound impact on the entire market. Last week, the price of Bitcoin closed down, falling below $67,000, which severely hit market sentiment. Previously, Bitcoin had tried to break through its recent historical highs, but failed, and instead experienced a sharp correction.
As the price of Bitcoin falls, the fear index of the entire cryptocurrency market continues to rise. The altcoin industry follows closely, showing a general downward trend. This chain reaction is not uncommon in the cryptocurrency market, because the price movement of Bitcoin is often regarded as a vane for the entire market. Therefore, when the price of Bitcoin falls, other digital assets are usually affected.
In this context, more than $92 million has been withdrawn from cryptocurrency derivatives trading in the past 24 hours. This figure reflects investors' pessimistic expectations for the future market trend and the actions they take to avoid potential risks. Among them, most of the withdrawn funds involve long traders, which further exacerbates the downward pressure on the market.
At the same time, analysis of on-chain data also provides us with some clues about market dynamics. According to data provided by CryptoQuant, average inflows across all stablecoins have dropped by more than half to $40 billion. The significant drop in stablecoin trading volume is seen by on-chain and macro researcher Axel Adler as a bearish signal for the entire crypto market. He believes this reflects a decline in overall purchasing power and a reduction in much-needed liquidity amid heightened market volatility.
Adler also pointed out that the bullish sentiment in the market will not completely disappear until the stablecoin trading volume falls below $30 billion. This means that despite the current low market sentiment, some investors still have hope for the future recovery of the market.
From a macro perspective, in the more than two months since Bitcoin’s fourth halving, institutional adoption has continued to rise with the approval of multiple spot BTC ETFs in different jurisdictions. This trend should have had a positive impact on the market, but Grayscale's GBTC has seen significant cash outflows so far this year, which has seriously affected the market's bullish sentiment.
Cryptocurrency market exchange +: 599695450 is currently at a critical turning point. The collapse of Bitcoin prices, the decline in stablecoin trading volume, and the cash outflow of GBTC have combined to create a haze in the market. As Adler said, before the stablecoin trading volume falls below a certain key level, the market's bullish sentiment may still recover.
