The cryptocurrency market continued its downward trend in the past 24 hours, with its total market capitalization falling to $2.2 trillion. The report suggests this pullback is related to the hawkish comments from Federal Reserve Chairman Kevin Warsh, which subsequently led to a broader sell-off in risk assets.

Macro sentiment drags down risk assets

Given that market pricing remains highly dependent on interest rate expectations, a tightening stance typically suppresses risk appetite. The recent synchronized decline in crypto assets also indicates that funds are still adjusting their positions based on macroeconomic logic, rather than solely trading around on-chain events.

The report noted that the correlation between the crypto market and the S&P 500 index reached 63%. This level indicates that current price fluctuations are more influenced by the macroeconomic environment, and changes in risk sentiment in the US stock market are still being transmitted to the crypto market.

The decline in Strategy-related instruments exacerbated concerns.

In addition to macroeconomic factors, the 11% drop in Strategy's STRC financing vehicle also exacerbated market concerns about corporate Bitcoin holders and liquidity. Because these financing arrangements are linked to corporate Bitcoin holding strategies, fluctuations in related assets are easily interpreted by the market as stress signals.

Such concerns may not necessarily change corporate holdings directly, but they can affect the market's judgment on subsequent financing capabilities and liquidity conditions, thereby amplifying short-term risk aversion.

Market Focuses on Bitcoin Support Range

Next, traders are watching whether the $63,000 to $64,000 range for Bitcoin can provide support. If it stabilizes in this area, market sentiment may ease temporarily; if it breaks below this level, selling pressure may continue to mount.

Based on the information disclosed so far, this round of decline is mainly driven by macroeconomic signals and concerns about corporate liquidity. In the short term, the market is still observing whether risky assets will continue to weaken in tandem.