The market experienced a sudden crash at a high level, triggered by a news item from the former president about imposing tariffs on Dongda. The main reason stems from another piece of news regarding the permanent reduction of government jobs, as the standstill continues. The market lacks confidence in the follow-up, compounded by the severe bubble in the AI sector and tech stocks in the US. It resembles the bubble of the internet era in the millennium, coupled with the enthusiasm of retail investors, prompting Wall Street's smart money to start offloading.
Alongside this, the cryptocurrency sector plummeted, with opportunities arising from crises. This round of black swan is not considered a systemic risk; for the high-level Bitcoin, it can be seen as a quick correction to clear out high leverage. Currently, I don't see the starting point of a bear market. It is highly probable that we will enter a prolonged adjustment period. Therefore, the best choice in such times is to layout some cheap, future-oriented spot assets.
The day's liquidation volume reached 19.2 billion. It has already exceeded the historical extreme; in previous years, a single-day black swan event of 60-80 billion was considered a lot. This can also be seen as witnessing history.
The US stock market is closed on weekends, and there will be some fluctuations for adjustment. Those holding short positions should ensure profit protection.
If there are no positions, it's advisable to observe or just buy some spot. The US stock market S&P is still probing around 6500 after hours. Next week, in the Asian market for cryptocurrencies, and the tokens previously accumulated by US stocks to maintain their own shares, may trigger another round of new sell-offs, so be sure to manage risk.
