Market Sentiment - Crypto markets are experiencing a negative sentiment as the Crypto Fear and Greed Index has dropped to 16, indicating "Extreme Fear" and marking a one-month low [1] - Bitcoin has decreased approximately 7% to around $82,000, influenced by recent US political developments, including President Trump's intention to nominate Kevin Warsh as the new Fed Chair [1][2] Liquidation and Market Dynamics - The recent sell-off has led to significant liquidations in leveraged positions, with $1.80 billion liquidated in the past 24 hours, primarily from long positions totaling $1.68 billion [3] - A total of 280,430 traders were affected by these liquidations, indicating a substantial impact on market participants [3] Competitive Landscape - Bitcoin is facing increased competition from traditional defensive assets like gold, which has recently reached an all-time high of around $5,600 per ounce [4] - The current geopolitical uncertainty and policy risks are driving investors towards assets that are traditionally seen as hedges against risk [4] Market Conditions and Predictions - Analysts suggest that a decisive break below $82,000 could lead to further declines towards the $79,000–$80,000 range, while a sustained upward movement requires Bitcoin to surpass $88,500 [5] - Despite a macro backdrop that appears supportive due to falling interest rates, overall liquidity conditions remain tight, which is a critical factor influencing crypto market performance [6]