The crypto market saw a decline on Monday, with the total market value falling to $2.68 trillion, a decrease of 1.0% over the past 24 hours. The trading volume was $62.13 billion. At the same time, geopolitical tensions in the Middle East have intensified again, raising market risk aversion and putting pressure on risk assets overall.
Major cryptocurrencies generally fell in value.
Bitcoin once fell to $77,664.88, with a 24-hour decline of 0.8%. Ethereum dropped to $2,417.73, with a decline of 2.0%. XRP fell to $1.35, with a decline of 3.4%, performing relatively weaker among the major tokens.
- Total encrypted market value: $2.68 trillion
- 24-hour trading volume: $62.13 billion
- Overall market decline: 1.0%
Risk aversion suppresses risky assets
This round of decline occurred in tandem with a broader market aversion to risk. As tensions in the Middle East escalated again, investors' willingness to allocate to high-risk assets decreased, and crypto assets were also affected negatively.
The market usually tends to adopt a more cautious position when news related to regional conflicts intensifies. In the past, crypto assets have also declined in tandem with risk assets such as stocks on multiple occasions, and it is only when a clearer direction for the situation becomes apparent that risk appetite may begin to recover.
The encrypted market continues to exhibit linked characteristics.
Judging from this fluctuation, the crypto market continues to exhibit a correlation with other risky assets. When geopolitical risks rise, funds tend to withdraw from assets with higher volatility first and shift towards safer investments.
In the short term, the market's focus remains on the development of external risk events and whether risk appetite will continue to weaken.
