The encryption market continues to weaken on Tuesday, with the total market value falling to about $2,61 trillion. There were 87 drops in the first 100 big coins, bitcoin fell to a low level last April, and it went back in parallel with the Taifeng, XRP, Solana and Dogecoin.

Interest rate expected to suppress risk assets

The fall was first affected by macro-expected impacts. According to reports, the market's concern about maintaining interest rates at a high level rose following the nomination of Kevin Warsh by United States President Trump for the next Federal Reserve Chairman. Warsh has been seen as a candidate for tighter monetary policy, which puts a strain on risk assets.

At the same time, the partial suspension of the United States federal Government has not been completely eliminated and has also increased the risk-averse sentiment in the market. When political uncertainty rises, funds tend to be withdrawn first from more volatile asset classes, thus delaying the encryption market.

Bitcoin & Etherport ETF continues to flow

The withdrawal of institutional funds is also an important reason for the fall of this round. Last week, the real bitcoin ETF combined net outwards were close to $1.5 billion, and BlackRock, Fidelity and Bitwise products came up for greater ransom. Flows usually reduce market carrying capacity and magnify spot price volatility.

ETF also recorded close to $460 million in net outflows over the same period, showing that the agency's exposure to mainstream encrypted assets is shrinking. For the market, this means not only weak prices, but also a slowdown in incremental purchases.

Liquidation magnifying drop

After falling prices, the volatility was further amplified by the concentration of leverage silos. Over the past 24 hours, the market has been liquidated for over $800 million, most of which came from highly leveraged silos. The largest single settlement was in Hyperliquid, with a BTC-USD warehouse settlement amounting to approximately $1.546 million.

As liquidation increases, so does market sentiment. The index of encrypted fear and greed has dropped to 15 and is in “extreme fear”, reflecting a rapid decline in short-term financial risk preferences.

At present, Bitcoin is about US$ 77,324, which is close to the US$ 74,500 supporting position mentioned. If this position breaks down, the market area of concern will be moved further down to between $68,000 and $70,000.