According to Woofun AI, the cryptocurrency market experienced a severe setback on Thursday due to the spread of all-out selling sentiment on Wall Street. The prices of core assets such as Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) fell sharply. The previous rebound established on Wednesday was completely erased, and market risk appetite shrank sharply.
The root cause of this sharp decline is a significant deterioration in risk appetite in global financial markets. In particular, US technology stocks have driven the overall market downward due to investors' concerns about overvaluation and the sustainability of large-scale AI infrastructure investments. The Nasdaq Index (^IXIC) fell 5.52%. This decline directly increased the selling pressure on various speculative assets, making high-risk assets such as cryptocurrencies bear the brunt. Specifically, the price of Bitcoin (BTC) fell 5.65% to $75,880.60, with a 24-hour decline of 5.53%; Ethereum (ETH) showed a weaker performance, falling 7.80%, closing at $2,233.79, a corresponding decrease of 7.69%; and Solana (SOL) fell 6.22% to $89.55, or 5.46%.
It is worth noting that the liquidation of leveraged transactions further amplified the downward trend in the market. As prices declined, additional selling pressure brought about by forced liquidation accelerated the rate of losses. The brief rebound that occurred on Wednesday quickly disappeared against the backdrop of a tightening financial environment, indicating that when investors reduce their allocation of high-risk assets, the market trend may be drastically reversed.
According to data compiled by Woofun AI, this linkage effect, which is transmitted from traditional market sentiment to the crypto sector, is particularly evident in the context of the 5.5% decline in the NASDAQ index, highlighting the extreme sensitivity of speculative assets to changes in the macro-financial environment.
At the level of institutional funding, the Bitcoin-themed ETF (IBIT.US) is facing huge selling pressure. It has had a net outflow of more than 1.1 billion US dollars for three consecutive trading days, and did not record a net inflow until Wednesday, but the fall in the market on Thursday once again raised concerns about institutional capital outflows. The performance of major funds is basically in line with the underlying asset price trend: iShares Bitcoin Trust ETF (IBIT.US) fell 5.07%, Fidelity Wise Origin Bitcoin Fund (FBTC.US) fell 4.93%, and iShares Ethereum Trust ETF (ETHA.US) fell 7.25%. The changes in the net worth of these ETFs not only reflect retail investors' sentiment, but also reveal safe-haven tendencies at the institutional level in times of increased macroeconomic uncertainty. The reversal in capital flows shows that despite previous capital inflows, institutional investors tend to lower their risk exposure in the face of continued selling pressure on technology stocks and AI-related stocks, adding uncertainty to the subsequent trend of the crypto market.
Judging from the technical side and overall market data, it is critical that Bitcoin can hold the key support level of $75,000 to $76,000. If this range falls, a more serious pullback may follow. Other mainstream altcoins such as Ripple (CRYPTO: XRP), Ethereum, and Solana have recovered most of their previous gains, and investors are closely watching the stability of their support levels.
Among the top ten best-performing cryptocurrencies, Bitcoin (BTC) ranked first with a 24-hour decline of -5.7% and a 7-day decline of -5.8%; Ethereum (ETH) ranked second with $2,233.79, a 24-hour decline of -7.8%, a 7-day decline of -4.0%; Tether (USDT) at $0.9989 with a volatility of -0.0%; Binance Coin (BNB) at $689.13, a 24-hour decline of -4.0%, 7-day -7.2% decline; Ripple (XRP) price was $1.22, 24-hour drop -6.3%, 7-day decline -4.0%; USDC (USDC) price was $0.9995 with -0.0% volatility; Solana (SOL) price was $89.55, 24-hour drop -6.2%, 7-day decline -9.9%; TRX price was 0.3180, 24-hour drop -0.5%, 7-day decline -4.0%; Figure Heloc (FIGR_HELOC) price was $1.04, 24-hour increase +1.5%, 7-day decrease -0.5%; Zcash (ZEC) price was $1,244.12, 24-hour decline -3.6%, 7-day decline -5.7%.
The future trend will largely depend on the development trend of traditional markets, especially whether the selling pressure on technology stocks, artificial intelligence-related stocks, and semiconductor stocks will ease. Until the Nasdaq index and the crypto market diverge or traditional markets stabilize, investors should be wary of a brief rebound to avoid misinterpreting it as a sign of continued recovery.