Mass liquidations highlight excessive leverage in the market, where sudden price swings force margin calls. This reflects over-speculation and poor risk management, amplifying downside momentum and causing panic among traders.
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To quantify the correlation between the price fluctuations of cryptocurrencies such as Dogecoin, SOL, XRP, and SUI and the broader market, methods such as the Pearson correlation coefficient can be used. By calculating the correlation coefficient between the price changes of these cryptocurrencies and a market index (such as the cryptocurrency market capitalization index), the degree of correlation can be determined. A value close to 1 indicates a strong positive correlation, while a value close to - 1 indicates a strong negative correlation.
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Impact of Trump's executive order on the cryptocurrency market: This policy will increase the proportion of cryptocurrency in the asset allocation of retail investors, introduce long - term stable funds, and change the market's fund structure. It will also attract more ordinary investors to participate in the cryptocurrency market, expanding the investor group.
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