【February 4th Market News and Data Analysis】

1. Goldman Sachs: Western capital flows dominated the precious metals market in January, with upward risks in the gold forecast;

2. #Vitalik stated that #L2 's original vision is 'outdated,' sparking heated discussions: the original route is no longer reasonable, calling for a search for new paths;

3. #BTC has erased all gains since #TRUMP was elected;

4. Senate Democrats will hold another closed-door meeting tomorrow regarding the '#CLARITY bill'.

The price of Bitcoin has fallen more than 40% from its historical high last October, briefly dipping below $73,000, erasing all gains since the U.S. election in November last year. Analysts believe that Bitcoin's hedging properties are being questioned, with its performance resembling that of purely speculative assets. If the downward trend continues, it could pose a serious threat to the balance sheets of companies that actively allocated Bitcoin as a reserve asset over the past year. Meanwhile, the spot Bitcoin ETF, while expanding the investor base, has also reinforced its characteristics as a risk asset, significantly increasing its correlation with U.S. stocks. Recently, the Bitcoin ETF has continued to record significant capital outflows, indicating that institutional investors are withdrawing, which could create a negative feedback loop of accelerated selling in a declining market.

The deeper impact of this crash could potentially shake the overall structure of the cryptocurrency market. If prices further decline to critical cost lines, a large number of miners will face existential crises, directly affecting the security foundation of the Bitcoin network. As the interweaving of crypto assets and traditional financial products becomes increasingly tight, a sharp drop in Bitcoin could trigger a cross-market collateral liquidation crisis. This would not only severely impact financial products that rely on such structures but could also lead to a sudden liquidity drought, transmitting risks to a broader range of crypto assets.