This morning, the global financial markets experienced a synchronized pullback, with the US stock market and Bitcoin prices both showing a fall trend. Analysis indicates that geopolitical risks have become the main triggering factor.

The situation in the Middle East has become increasingly tense, and the United States has approved the evacuation of embassy personnel from several Middle Eastern countries, including Iraq, Bahrain, and Kuwait. U.S. military families are also allowed to voluntarily leave local bases. At the same time, the Israel Defense Forces announced a heightened state of alert, while the Iranian Revolutionary Guard claimed to be ready with upgraded missiles. Despite the U.S. CPI data for May released the previous night being lower than expected, which should have been beneficial for the market, the negative impact of geopolitical risks dominated, leading to an increase in risk-averse sentiment among investors and a subsequent market decline.

It is worth noting that this market adjustment may only be a short-term phenomenon. The Fear and Greed Index remains at a relatively stable level of 61, indicating that the overall sentiment of investors has not collapsed. Bitcoin market data shows that although short-term speculators have significantly reduced their holdings and the trading turnover rate has declined, the number of wallets holding more than 0.1 Bitcoin has exceeded 4.4 million, reaching a historical high, suggesting that retail participation is still active. Technical analysis indicates that Bitcoin's current short-term support area is between $100,500 and $105,000, with approximately 1.7 million Bitcoins in that range; while the strongest support level is located between $93,000 and $98,000, controlled by long-term holders. If these investors maintain their holdings, the market's downside potential may be limited.

The capital flow data shows that the on-site funds have decreased by about $200 million, with the market values of the main stablecoins USDT and USDC both declining. The Asian market has seen a capital outflow for the first time this week, while the US market lacks momentum for capital inflow.

Looking ahead to the market, multiple factors will jointly influence its direction: the development of the geopolitical conflict in the Middle East, the progress of China-U.S. trade negotiations, and the direction of the Federal Reserve's monetary policy will all become key variables determining the future trend of the market.