Deep Analysis of the Causes of Bitcoin's Crash

The hardline stance of the new Federal Reserve Chair, Jerome Powell, became the direct trigger
While institutional withdrawals and high leverage liquidations
are the core drivers pushing the market down

The most critical change is the complete collapse of Bitcoin's narrative
The myth of digital gold has been thoroughly shattered
Against the backdrop of escalating Middle East conflicts
It not only failed to attract safe-haven funds but also declined along with gold

As a so-called [risk hedging tool]
Recently, it has neither kept pace with the rise of AI tech stocks
Nor gained from the safe-haven rally in gold
Its market positioning has been widely questioned
Falling into an awkward situation where it is neither a safe-haven asset
nor a high-growth asset

Adding to the woes are dual pressures:
On one hand, the escalation of Middle East conflicts
Coupled with the potential US federal government shutdown
Market panic sentiment intensifies
Bitcoin, as a high-risk asset, is being heavily sold off
On the other hand, the dollar is strengthening
Market funds' safe-haven demand shifts to gold and cash
And for Bitcoin, with its ambiguous positioning, funds simply cannot stay

In the short term, Bitcoin will remain under pressure
The key support level is at $75,000
Once broken, it will likely trigger a new round of selling pressure
A more critical technical threshold
is the low point of about $74,500 set under last April’s tariffs
This is the core line for measuring market confidence
Whether it can hold will directly determine the short-term market sentiment.