Geopolitical & Macro Analysis: Why Did Bitcoin Plummet? 📉🌍

1) The Core Issue Is Not “Weak Bitcoin”, But Rather “The Market Is Risk-Off” 🧭

When Bitcoin drops sharply in a short period, especially triggering a wave of liquidations, what often occurs is not a fundamental change in Bitcoin overnight, but rather a shift in market mode, from risk-on to risk-off, causing major players to reflexively reduce exposure to speculative assets, increase cash holdings, and decrease leverage, because in such phases what is sought is not “maximal profit”, but rather “safety first”.

At this point, Bitcoin often becomes the primary victim not because it is the worst, but because it is the most liquid in the crypto ecosystem, thus sold the quickest when the market needs cash and needs to close risks.

2) Geopolitical Catalysts: US-Iran Tensions Trigger Collective Anxiety 🔥

News about rising US-Iran tensions and the Pentagon's readiness to follow presidential directives strengthens market perception that there is potential for unpredictable escalation, and since geopolitical uncertainty tends to lead to a flight to safety, speculative assets are usually pressured first.

So, even though geopolitical news does not always “directly” lower Bitcoin technically, it often serves as a psychological trigger that makes global investors hit the same button: reduce risk.

3) Macro Catalysts: Speculation on The Fed's Chair = Shock to Interest Rate Expectations 🏦

When the market catches signals of a shift in US monetary policy leadership, especially with a name seen as potentially changing the direction of interest rate cut expectations, the effect ripples across all risky assets, as crypto is very sensitive to dollar liquidity, interest rates, and risk appetite.

In several reports, Kevin Warsh is mentioned as a strong candidate to replace Jerome Powell, and such rumors alone are enough to change market mood to a more defensive stance.

4) Technical Mechanism: “Liquidation” Is Not the Primary Cause, But the Multiplier of the Explosion