Under the dominance of #ETH capital inflow, why did Virtual Money suddenly big dump?

Recently, the virtual money market has experienced severe fluctuations, with mainstream coin prices significantly falling. The core reason stems from the restructuring of capital flows due to the easing of trade tensions between China and the United States.
With the signing of a one-year trade easing agreement between China and the United States, both countries' policy focus has shifted to domestic market recovery. Previously, large amounts of capital that flowed into Virtual Money began to withdraw from the high-volatility crypto assets and return to mainstream markets such as stocks and bonds, where the recovery is clearer. Some conservative funds started to gradually enter the spot market for positioning, and the short-term withdrawal wave directly triggered market panic, compounded by the leverage liquidation effect, further amplifying the fall.

At the same time, the shrinking liquidity of the Virtual Money market has exacerbated the volatility - the growth of funding inflow channels such as stablecoins and digital asset ETFs has stagnated, with incremental funds being diverted to lower-risk cash and government bonds, weakening the market's resistance to falls. On the regulatory front, the U.S. cryptocurrency regulatory framework is becoming clearer, and institutional funds are reducing their positions in advance to avoid risks, resonating with the macro fund transfer.

For investors, the current market is in a capital rebalancing phase. Attention should be paid to the capital movements when the economic recovery in China and the U.S. falls short of expectations, as well as the recovery signals of liquidity channels for Virtual Money, which will determine the direction of the market adjustment cycle.