Bitcoin falls to a two-week low! Multiple negative factors put pressure on the crypto market. Investors remain cautious and wait and see after the selling wave.

On Tuesday, Bitcoin continued to decline. After experiencing a "forgettable" October, the world's largest digital asset remained under pressure due to the strong US dollar and a new round of chaos in the decentralized finance (DeFi) sector. Bitcoin fell by 2.5% to $104,179 at one point, hitting a two-week low. Meanwhile, the second-largest cryptocurrency, Ethereum, dropped by 3.4% and fell below the $3,500 mark, further extending the previous pullback from its highs. This decline comes after the cryptocurrency market experienced a historic liquidation event three weeks ago, where billions of dollars worth of leveraged crypto positions were forced to close. Since then, investors seem hesitant to bet on a quick rebound for Bitcoin. Market maker Keyrock pointed out in a report that traders are "hesitant to re-enter." The open interest in Bitcoin perpetual futures contracts is currently around $68 billion, down about 30% from the October peak. Liquidations are still ongoingaccording to CoinGlass data, in the past 24 hours alone, about $1.2 billion worth of long positions have been liquidated due to selling pressure in the overall market. Additionally, investors have withdrawn over $1.8 billion from Bitcoin and Ethereum exchange-traded funds (ETFs) in the past four trading days. The macroeconomic environment is also unfavorable. XS.com market analyst Linh Tran stated that market expectations for a December rate cut by the Federal Reserve have been almost completely suppressed, meaning a "prolonged period of high interest rates" is forming, which "increases the opportunity cost of holding non-yielding assets (like Bitcoin) and weakens short-term speculation." Risk events in the DeFi sector have further dampened market sentiment. On Monday, decentralized liquidity protocol Balancer was hit by a vulnerability attack, resulting in over $100 million in digital assets being stolen. Caladan research director Derek Lim pointed out, "The current crypto market is facing multiple short-term headwinds, which is undoubtedly adding insult to injury for a vulnerable market that has just experienced a massive liquidation event in October and a series of hacks."