Analyst: The sensitivity (Beta) of the cryptocurrency market to macro risks will remain high

Earlier this week, the U.S. stock market briefly rebounded due to the end of the government shutdown, but then quickly fell back. As the release of key economic data was delayed, traders began to question whether the Federal Reserve had sufficient reason to cut interest rates in the short term, putting further pressure on market risk assets. "The current sell-off is completely in sync with other risk assets, but due to higher volatility, the declines in cryptocurrencies are larger," said Max Gokhman, Deputy Chief Investment Officer of Franklin Templeton Investment Solutions. "As institutional investment has not yet expanded significantly beyond Bitcoin and Ethereum, the cryptocurrency market's sensitivity to macro risks (Beta) will remain high." Liquidity has also sharply declined. Kaiko stated that the "market depth" indicator, which measures the market's ability to handle large trades, has dropped about 30% from this year's peak