The main reasons behind the recent sharp decline of Bitcoin‼️

1. Shift in macro policy expectations (catalyst): Trump nominated Kevin W. for Fed Chair, whose hawkish stance and "balance sheet reduction before rate cuts" rhetoric triggered market expectations of tightening monetary policy and a stronger dollar, putting risk assets under pressure. At the same time, Trump's tariffs implementation increased global economic and trade uncertainties, leading to capital withdrawal from risk assets.

2. Continuous outflow of institutional funds (funding pressure): Bitcoin spot ETF funds have been consistently net outflowing (over $1.6 billion accumulated in January). Institutions like BlackRock have reduced positions during rebounds. Coupled with delays in regulatory policy implementation, institutional confidence has weakened, accelerating capital withdrawal.

3. High leverage chain liquidations (decline amplifier): The market's high leverage long positions piled up, and key support levels were broken, triggering stop-losses and margin calls. Approximately $734 million was liquidated across the entire network in 24 hours, with over 70% of positions being longs. Forced sell-offs further pushed prices down.

4. Decline in risk appetite and liquidity drought: US stocks closed lower, with the Nasdaq giving back gains for the year; risk appetite cooled down. Crypto order book depth decreased, reducing market absorption capacity. Small sell orders triggered sharp price drops, spreading panic.

5. Core narrative shaken: The "digital gold" narrative of Bitcoin is being questioned, with its correlation to gold being unstable and volatility high. Its safe-haven attributes are hard to demonstrate, and funds are favoring traditional safe-haven assets. $BTC #加密市场隔夜V型震荡