Cryptocurrency Market Crash: Multiple Factors Trigger Epic Correction
Recently, the cryptocurrency market has experienced a cliff-like decline, with a maximum single-day drop of nearly 15% for $BTC , briefly falling below $104,000. The total liquidation across the network exceeded $19 billion in 24 hours.
First, after Bitcoin broke through the historical high of $126,000, institutions and short-term funds took profits at high positions, triggering selling pressure.
Second, tech stocks plummeted due to profit concerns, and under the cross-asset spillover effect, the cryptocurrency market was affected, compounded by trade war news, leading to a collapse in global asset confidence.
Furthermore, high-leverage speculation acted as a "magnitude amplifier" for the decline, with prices plummeting triggering a large number of long positions being liquidated, forming a negative feedback loop of "decline-liquidation-further decline."
Finally, the cooling expectation of the Federal Reserve's easing has triggered the market's sensitivity to the lack of fundamental support for high valuations in the cryptocurrency market, leading to the withdrawal of rational funds.
This correction is a correction of the "liquidity dividend + emotional bubble" and indicates that the market has deeply embedded itself into the global macroeconomic system. Caution should be exercised regarding chasing highs, controlling risks, and paying attention to macro risks.
In this market, 90% of people are just fodder. Will you continue to pay tuition or become a hunter? It's your choice.
