Huo Xing Finance reports that on May 28, the market’s core focus remains on “rekindling inflation” and the “prolonged geopolitical conflict.” Federal Reserve Governor Cook explicitly stated that if inflation does not cool as expected, she would support further rate hikes, signaling that the Fed’s tolerance for prolonged high interest rates is rising. From energy prices and AI capital expenditures to global supply chain costs, the market is now beginning to worry that new inflationary pressures may be forming. Meanwhile, although negotiations continue in the Middle East, military conflicts have not been genuinely resolved. U.S. forces have again struck military targets linked to Iran, while drone and shipping standoffs persist around the Strait of Hormuz. Trump has further emphasized that he will not ease sanctions on Iran and refuses to allow Iran to control the strait. This indicates that, despite short-term market hopes for a ceasefire, risks to energy supply chains and global shipping remain highly sensitive. On another front, U.S. equity capital continues to concentrate in the AI and semiconductor sectors. SK Hynix’s market cap has surpassed $1 trillion, and TSMC has signaled price increases for its 3nm chips, demonstrating that AI demand continues to drive up pricing and capital spending across the tech supply chain. However, this has also sparked concerns that the AI boom itself is reigniting global costs for equipment, energy, and infrastructure, further increasing inflationary persistence. In the crypto market, after BTC dropped below $74,000, the market has officially entered a leverage deleveraging phase. The liquidation heatmap shows significant liquidity accumulation at $75,800 and $77,800, forming clear short-term resistance zones; if $70,000 fails to provide adequate support, the market may continue downward to find a new equilibrium. Amid the Fed’s renewed hawkish stance, rising geopolitical risks, and global liquidity contraction, the broader crypto market remains clearly dominated by macroeconomic factors and risk events.
BTC Drops Below $74,000 as Crypto Market Enters Leverage Liquidation Phase
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Summary
The BTC market update shows Bitcoin falling below $74,000, triggering leveraged liquidations. Key resistance levels are now at $75,800 and $77,800. The crypto market remains sensitive to macro risks, including Fed policy and geopolitical tensions. Federal Reserve Governor Cook signaled openness to further rate hikes if inflation persists. Rising energy prices, AI spending, and supply chain costs are exacerbating inflation concerns. Escalating tensions in the Middle East and U.S. military actions are heightening risk sentiment. Capital inflows into AI and semiconductors are fueling fears of persistent inflation.
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