Crypto Assets market experiences adjustments, multiple factors trigger significant fall

Recently, the Crypto Assets market has experienced a significant fall, mainly influenced by the following factors:

1. The US stock market remains sluggish, with tech stocks performing weakly.
2. A trading platform suffered a large-scale hacking attack.
3. Crypto Assets investment products funds continue to flow out
4. The market faces significant upward resistance, which hinders overall recovery.

The sluggish stock market drags down the Crypto Assets market

After a significant fall last week, the major US stock indices fell again on Monday. The Nasdaq Composite Index closed down 1.2%, and the S&P 500 Index fell 0.5%. A recent investment policy memorandum signed by Trump has raised market concerns, leading to a sharp decline in Chinese concept stocks. Additionally, the latest developments in the field of artificial intelligence are also putting pressure on tech giants, as investors express doubts about continued high spending.

NVIDIA's upcoming financial report has attracted market attention. Analysts have pointed out that its next-generation chips may face supply shortages, delays, and overheating issues, which could impact the company's short-term financial status. At the same time, economists warn that risks in the labor market are rising, the real estate market is deteriorating, and local governments are cutting expenditures, all of which may lead to a slowdown in economic growth.

Ethereum leads the fall, derivatives market liquidation intensifies

The adjustment of the Crypto Assets market began on February 21 when a trading platform suffered a hacking incident. As of February 25, the sell-off is still ongoing:

• Ethereum has fallen by 11.5% in the last 24 hours, trading at $2,503.26.
• Bitcoin fell by 4.9%, reported at 91,549.81 USD
• Other mainstream Crypto Assets also generally fall.

The large-scale liquidation in the derivatives market has further exacerbated market volatility. In the past 24 hours, a total of 316,393 traders have been liquidated, with a total liquidation amount reaching $952.08 million. Long liquidations dominate, indicating that the market is over-leveraged on the bullish side.

Investors avoid risks, funds continue to flow out

Data shows that Crypto Assets investment products experienced capital outflows for the second consecutive week. As of the week ending February 21, the total capital outflow amounted to $508 million, with Bitcoin experiencing the highest outflow at $571 million. This reflects that institutional investors are reducing their exposure to digital assets.

Analysts believe that the current uncertainty mainly comes from trade tariffs, monetary policy, and inflation expectations. Investors are waiting for the U.S. inflation data to be released this week, especially the Personal Consumption Expenditure ( PCE ) index. At the same time, recent employment data shows that the labor market has weakened, which has lowered market expectations for multiple interest rate cuts in 2025.

Technical resistance, short-term outlook unclear

From a technical perspective, the Crypto Assets market's total market cap is facing a key resistance zone between 3.28 trillion and 3.31 trillion USD. The Relative Strength Index (RSI) is at 40, indicating that the market still leans towards a downtrend. If it falls below the support level of 3.03 trillion USD, it could trigger further sell-offs.

Some analysts are cautious about the short-term outlook. There are opinions that Bitcoin may fall to around $70,000. Other analysts point out that, relative to the potential price in the next 6-12 months, $95,000 is still a reasonable exit point.

Overall, the current Crypto Assets market is in a neutral yet uncertain period. Investors need to closely monitor macroeconomic data, regulatory trends, and changes in market sentiment to make informed investment decisions.