The correction in the encrypted market is a cyclical natural adjustment, essentially stemming from the price rebalancing of high volatility assets. The current correction may be driven by three factors: tightening global regulatory policies suppressing speculative sentiment, expectations of interest rate hikes by the Federal Reserve triggering liquidity concerns, and profit-taking pressure after technical overbought conditions. Historical data shows that the median retracement of Bitcoin during bear markets reaches 75%, but technological innovation cycles often can transcend short-term fluctuations. Investors need to be wary of the chain liquidation risks associated with leveraged contracts, while also paying attention to the 'smart money' bottom-fishing signals in on-chain data. There is a mismatch between short-term market sentiment and long-term value; the correction may create structural opportunities for dollar-cost averaging strategies, but strict adherence to risk management discipline is required.