The crypto market is currently facing challenges, with major cryptocurrencies such as bitcoin (BTC), ether (ETH), and solana (SOL) declining by about 3%. This downturn is attributed to slow developments regarding a proposed U.S. strategic BTC reserve and tightening dollar liquidity. Traders anticipate a possible 50% pullback from January highs, resulting in some investing in limit orders for lower prices on preferred coins. The sentiment around ether remains bearish, having already dropped 15% this month, with concerns about its waning position in comparison to Solana. Ethereum’s layer-2 scaling solutions have also seen over a 50% decline, raising questions about their effectiveness in driving ETH adoption. Amid these factors, investors are shifting towards gold and U.S. Treasury bonds amidst fears of a trade war, with gold reaching record prices. Key macroeconomic indicators, including the U.S. ADP employment report, are expected to introduce further market volatility. Overall, the market is characterized by risk aversion, impacting perspectives on crypto assets as traditional safe havens gain favor.

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