Crypto Assets market experiences a new round of fall, influenced by multiple factors.

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

1. The US stock market remains sluggish, with technology stocks performing weakly. The Nasdaq index fell 1.2% on Monday, and the S&P 500 index dropped 0.5%. Chinese concept stocks were hit hard, with the Nasdaq Golden Dragon China Index plummeting over 5%.

2. New variables have emerged in the field of artificial intelligence. Reports indicate that Microsoft is scaling back its data center leasing, which may reflect concerns about its investment in AI computing power. At the same time, the upcoming financial report from NVIDIA has also drawn market attention, as its new generation of chips may face supply chain issues.

3. A trading platform suffered a $1.4 billion hacking incident, which impacted market confidence.

4. Crypto Assets investment products continue to experience capital outflow. According to data, as of the week ending February 21, the net outflow of funds reached $508 million, with the highest outflow occurring in Bitcoin.

5. The uncertainty surrounding the U.S. economic outlook is increasing. Some analyses suggest that risks in the labor market, slowing growth in real incomes, and a deteriorating real estate market could lead to an unexpected economic downturn.

Under the influence of these factors, the Crypto Assets market generally experiences a fall:

• Ethereum leads the fall, down 11.5% in 24 hours, dropping to around $2503.
• Bitcoin fell 4.9%, trading at around 91500 dollars.
• Solana fell 15.7%, XRP fell 10.8%, Dogecoin fell 13.7%.

The significant sell-off has triggered a chain reaction in the derivatives market. According to statistics, over 310,000 traders have faced forced liquidations in the past 24 hours, with a total liquidation amount nearing $1 billion. Long liquidations dominate, indicating that the market was previously over-leveraged.

Nevertheless, some analysts believe that the market reaction this time is relatively mild compared to the FTX collapse in 2022, indicating that the maturity of the Crypto Assets industry has improved.

Looking ahead, market participants are closely monitoring the upcoming U.S. inflation data to be released this week. The Personal Consumption Expenditures (PCE) index, as the Federal Reserve's preferred measure of inflation, will be published on February 28. Currently, the market generally expects the Federal Reserve to keep interest rates unchanged at the March and May meetings.

From a technical perspective, the total market value of Crypto Assets has fallen below a key support level and may further test the vicinity of $3.03 trillion. If it breaks below this level, it could trigger a new round of selling.

Some industry insiders hold a cautious attitude towards the short-term trend. The co-founder of a trading platform predicts that Bitcoin may fall back to around $70,000. Another analyst believes that the likelihood of Bitcoin reaching a new high in the next three months is low.

Overall, the current Crypto Assets market is in a phase of adjustment, and investor sentiment is becoming cautious. The future trend will depend on changes in multiple factors such as the macroeconomic environment, regulatory policies, and the development of the industry itself.