The cryptocurrency market has suffered another heavy blow, with market data showing that Bit has fallen below the $90,000 mark, a 24-hour drop of 6.2%, hitting a new low since mid-November. The altcoin market is also in a bloodbath, with the two major leaders ETH and SOL falling below $2,400 and $140 respectively, with 24-hour drops of 11% and 14.88%. Investor confidence has been severely shaken, and the fear and greed index has fallen from 49 to 25 today, returning to a "extreme fear" state for the first time in 5 months.
Tech stocks lead the plunge, dragging down the cryptocurrency market
According to media reports, as the largest supporter of OpenAI, Microsoft has canceled the leasing of some of its AI data centers. The market speculates that Microsoft may be abandoning "Stargate", concerned about the potential oversupply risk of AI infrastructure. In addition, with Trump claiming that tariffs on Canada and Mexico will continue, further undermining market confidence, large-cap US tech stocks have collectively plummeted. Due to the strong correlation between Bit and tech stocks, Bit has experienced a significant decline under the drag of the US stock market.
Meanwhile, lawmakers in the U.S. state of South Dakota have postponed a vote that could have allowed the state to invest in Bit, effectively killing the bill. The legislative decision of a relatively small state like South Dakota can have a significant impact on the global Bit market, but the failure of the bill is amplified by the market as a symbol of Bit's acceptance, which may trigger a wider psychological effect and further dampen market sentiment.
Will it continue to fall?
The market is confusing, and many seasoned experts have expressed their views on the future trend. Most analysts believe this is just a cyclical correction in the bull market, emphasizing that all previous bull markets have experienced price adjustments of over 50% before the market still maintains an upward trend. BitMEX co-founder Arthur Hayes, who has been bearish since January, has once again given an analysis, firmly believing that the Bit price will fall to $70,000, returning to the starting point of the Trump market.
Compared to the gradually detached Bit, the market is more concerned about the two major altcoin leaders ETH and SOL. Previously, there were rumors in the market that Bybit needed to repurchase ETH to supplement its wallet funds, which had driven a significant rebound in the ETH price at the time. However, news has now emerged that Bybit has successfully filled the ETH funding gap through loans and OTC trading, and the potential buying demand has been eliminated. This undoubtedly adds great uncertainty to the future price trend of ETH.
SOL has been performing poorly recently, and the collapse of LIBRA has exposed a meme conspiracy group controlled by institutions, completely overturning the public's original perception of the fairness of meme projects, severely undermining market confidence, and cooling the meme momentum. SOL's "golden shovel" attribute has also declined significantly. In addition, SOL will face a large amount of auction unlocking, and many holders choose to temporarily withdraw from the market to avoid risks, which further increases the downward pressure on SOL's price.
In general, the current market sentiment is still shrouded in a pessimistic atmosphere, and the price continues to explore downwards without showing signs of stabilization. Any slight breeze may trigger market volatility beyond expectations. In the face of uncertain market conditions, many investors have changed their investment strategies, shifting from the previous aggressive pursuit of high-risk, high-return to the steady pursuit of certainty. USDT wealth management has become a mainstream choice due to its relative flexibility and stability.
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