Recent sharp declines in cryptocurrency assets are mainly due to threefold pressures:

Macro tightening: The Federal Reserve has paused interest rate cuts, the new chair nominee is hawkish, liquidity easing expectations have faded, and funds are withdrawing from high-risk assets.

Leverage collapse: High-leverage long positions are being liquidated in succession, ETF fund outflows continue, and the market is caught in a "decline - liquidation" negative feedback loop.

Narrative shake-up: Bitcoin and risk assets are declining in tandem, the "digital gold" safe-haven attribute is being questioned, combined with regulatory pressures, and market sentiment has fallen into extreme fear.
In the short term, the market is still in a clearing phase, and volatility may continue.