Core Viewpoint - The cryptocurrency market is facing renewed selling pressure due to macroeconomic headwinds and negative industry news, leading to significant declines in major cryptocurrencies like Bitcoin and Ethereum [1][3]. Macroeconomic Factors - The primary concern for the market is the tightening of global liquidity, with indications from the Bank of Japan about potential interest rate hikes, causing Japanese two-year government bond yields to exceed 1% for the first time since 2008 [4]. - The shift in macroeconomic conditions is expected to lead to a repricing of global risk assets, with Bitcoin being particularly affected due to its high beta value [4]. - Upcoming key economic data from the U.S. may provide insights into the Federal Reserve's interest rate path, adding to the uncertainty surrounding global interest rates [4]. Industry-Specific Challenges - The cryptocurrency industry is facing a series of negative developments that are eroding investor confidence, including comments from the CEO of Strategy Inc. about potentially selling Bitcoin if the company's mNAV ratio falls below zero [5]. - The largest stablecoin, USDT, has also come under scrutiny, with S&P Global Ratings downgrading its stability assessment, raising concerns about potential collateral shortfalls due to declining Bitcoin values [5]. - A series of bearish developments over the weekend has further pressured the cryptocurrency market [5]. Market Dynamics and Leverage - The severity of the recent downturn is closely linked to the market's leverage structure, where macro-driven declines have triggered stop-loss orders and forced liquidations of long positions in perpetual contracts [6]. - The forced liquidation of leveraged positions during low liquidity periods has led to sharp declines in prices, creating a cycle of further selling pressure [6]. Bitcoin's Market Behavior - Bitcoin is increasingly behaving like a macro asset sensitive to interest rate expectations and global liquidity, rather than an independent "digital gold" [7]. - As long as the prevailing market narrative suggests rising yields and more attractive returns on safe assets, Bitcoin will continue to face headwinds and be traded as a high-risk asset [7].