Recently, the market has been a bit cold, hiding three chain reactions behind it.

Let's first talk about the rise in U.S. Treasury yields—who doesn't love a guaranteed profit? When the interest on zero-risk assets like U.S. Treasuries starts to soar, a lot of smart money will naturally retreat from the cryptocurrency market and turn to this piece of certain returns. The crypto market relies on liquidity, and this wave of capital outflow directly puts pressure on the market.

Looking at the decline in gold prices, the signal is even more subtle. In the past, Bitcoin was often used as digital gold, linked with traditional safe-haven assets. Now that even physical gold has dropped, it indicates that the overall risk aversion sentiment in the market is cooling down, and people are more inclined to choose certain assets like U.S. Treasuries. Naturally, the appeal of cryptocurrencies as alternative safe-haven tools is also discounted.

Everyone is currently focused on the Federal Reserve's next move. Before the release of important economic data, the market often enters a wait-and-see mode, with reduced trading volume and narrowed volatility. If the Federal Reserve sends hawkish signals and continues to tighten liquidity, the cryptocurrency market may face greater pressure; however, if the policy shifts towards easing, the funds that have been withdrawn will flow back in, pushing prices to rebound. This is the logic of the current game.