Market Overview - On March 3, cryptocurrencies experienced a sudden surge, with Bitcoin rising over 7.7% and Ethereum increasing by more than 11% [1][2] - Notable price movements included ADA soaring by 63.6% and XRP jumping by 28.1% [1][2] Liquidation Events - Over the past 24 hours, more than 180,000 traders were liquidated, with a total liquidation amount of approximately $828 million [2] - The liquidation breakdown showed significant losses across various time frames, with $830 million liquidated in 24 hours, including $280 million from long positions and $550 million from short positions [3] Regulatory Developments - President Trump announced that XRP, Solana (SOL), and Cardano (ADA) will be included in the U.S. cryptocurrency reserves [5][8] - A new working group was established to assess the feasibility of creating a national digital asset reserve and to develop a regulatory framework for the cryptocurrency industry [6][7] Market Sentiment and Reactions - The recent surge in cryptocurrency prices is seen as a response to the Biden administration's regulatory stance on the crypto industry [7] - Trump's upcoming cryptocurrency summit on March 7 aims to further solidify his support for the crypto sector [10] Historical Context - The cryptocurrency market faced a significant downturn prior to the recent surge, with Bitcoin dropping over 5% on February 26, reaching below $84,000, a nearly 20% decline from its January peak [13][16] - The market's volatility was exacerbated by a major hacking incident at Bybit, which resulted in the loss of over $1.5 billion in assets, triggering panic among investors [16][19]

Core Viewpoint - Bitcoin has experienced a significant decline, dropping nearly 40% from its peak of around $110,000 on January 20 to a low of approximately $80,000 on February 28, marking its lowest level since November 2024 [1][5] Market Performance - Other cryptocurrencies have also seen declines, with Ethereum dropping over 7.6% [2] - Bitcoin's price on February 28 was $80,472, reflecting a 4.95% decrease in the last 24 hours, with a trading volume of approximately $137.1 billion, down 10.24% [3] - In the past week, Bitcoin's price has fallen over 10%, while Ethereum has dropped 15.87% and SOLUSD has decreased by 15.97% [5] Liquidation Events - Over 200,000 traders were liquidated in the past 24 hours, with total liquidation amounting to $803 million (approximately 5.85 billion RMB) [3] - The liquidation data continues to rise, indicating ongoing market volatility [3] Causes of Decline - A significant sell-off in U.S. Bitcoin funds, particularly the iShares Bitcoin Trust, which saw a record outflow of $418 million on February 26, has contributed to the market downturn [8] - The recent hacking incident involving Bybit, where over $1.5 billion worth of cryptocurrencies were stolen, has heightened market fears regarding the security of digital assets [8][9] - The lack of substantial regulatory support from the new Trump administration has led to decreased investor enthusiasm, contributing to the price drop [9][10] Market Sentiment and Future Outlook - Analysts are divided on whether Bitcoin will rebound or continue to decline, with market sentiment playing a crucial role [6] - Some analysts have issued bearish warnings, indicating that the reversal in futures pricing for Bitcoin and Ethereum suggests weakening demand [11] - The potential for Bitcoin to be included in U.S. strategic reserves remains uncertain, with experts suggesting that such a move is unlikely due to the inherent volatility and risks associated with Bitcoin [12] - Despite the current pressures, there is a possibility of a structural rebound in the medium to long term, contingent on market conditions and potential policy changes from the Trump administration [12]