Multiple bearish pressures suppress Bitcoin, intensifying market panic with a "dive"

Yesterday, the cryptocurrency market experienced intense turbulence, with Bitcoin prices performing a "straight drop" pattern. After briefly touching $71,000 per coin, Bitcoin reversed downward, and as of press time, it has fallen below the $69,000 mark, with a daily decline of over 1.8%. This sharp decline not only affected Bitcoin but also triggered a broad market sell-off, with Ethereum dropping nearly 6%, and mainstream coins like Dogecoin also unable to escape the fallout.

The market's volatility has sparked a brutal deleveraging process. According to data, over 118,000 liquidation events occurred across the entire crypto network in the past 24 hours, with total liquidation amounts reaching $334 million (approximately 2.3 billion RMB). Many high-leverage long positions were forcibly liquidated during the market plunge, resulting in total losses.

Overall analysis suggests that this decline is the result of the combined effects of macroeconomic factors and geopolitical risks.

First, the Federal Reserve's expectations for interest rate cuts have once again shifted, becoming a core factor suppressing risk assets. Although market expectations for a rate cut in June temporarily increased, with key U.S. inflation data (PCE) imminent and Bloomberg Economics forecasting that the core PCE for December last year may rebound to 2.9% year-over-year, indicating persistent inflation, this has cast a shadow over the path toward monetary easing. Investors are seeking safety ahead of key data releases, withdrawing from high-risk cryptocurrency markets.

Second, geopolitical tensions have suddenly escalated, intensifying risk aversion. According to media reports, U.S. President Trump stated that if negotiations with Iran fail, the U.S. will support Israel in bombing Iran's nuclear facilities. This news quickly impacted the markets, causing a rush to sell risk assets, including gold, silver, and Bitcoin.

From a technical perspective, Bitcoin has entered a critical support level battle phase. Analysts point out that the $60,000 level is a key psychological point of focus, where a large volume of put options are concentrated. If this level is effectively broken, it could trigger a chain reaction of collateral liquidations and algorithmic sell-offs (cascade effect), further opening the downside space and even testing the 200-week moving average (around $58,000), which is considered a "lifeline." CryptoQuant's report also confirms the market's fragility, suggesting that Bitcoin's true bottom may be around $55,000, and that forming a bear market bottom will take time.

Overall, under the multiple pressures of tightening macro liquidity expectations, escalating geopolitical risks, and technical breakdowns, the crypto market is unlikely to stabilize in the short term.