Dear family in the crypto world, tonight's crash is indeed severe! As an analyst who has been in the market for many years, I'll get straight to the point: the more panicked you are now, the easier it is to make mistakes, so put down the keyboard!

I. First, let’s discuss why the crash happened


① Global crackdown by regulators

Just after the domestic conference on strict measures against mining and trading, the US and Russia are also tightening policies. Big institutions are fleeing faster than rabbits; Bitfinex alone has seen an outflow of 580 million USD in institutional funds in just a couple of days.


② Whales collectively dumping

Some miners sold 4,200 bitcoins in a single day. What's scarier is that ancient whale addresses from 2009 suddenly transferred coins. When such old antiques move, it results in nuclear-level sell pressure. Big players like Sun Yuchen have moved 200 million USD worth of BTC to exchanges.


③ The Federal Reserve plays tricks

Originally expected a rate cut in June, but Powell said inflation isn't under control and may need to raise rates. As the dollar index rises, the crypto market bleeds profusely. Now the 10-year US Treasury yield is up to 4.25%, and funds are rushing back to buy treasuries for safety.


④ Panic sell-off chain reaction

After breaking key support levels, the forced liquidation of leveraged long positions triggered a death spiral. In 24 hours, 240,000 people were liquidated, amounting to 9.6 billion, which is even more thrilling than (Squid Game).



II. Those who are trapped, look here (5 life-saving rules)


① First, splash some cold water on yourself

Don't rush to add to your position! Right now is like rushing out during a typhoon; you could easily get hit by a billboard. Open the exchange and check: if you're down less than 30%, you can save it; if you're down over 50%, quickly check if the project itself has fundamental flaws.


② Self-rescue three axes (practical guide)


Step-by-step averaging down: For instance, if BTC drops to 30,000, add to your position every 10% drop, but ensure it's spare money.
Hedging: Open short positions in the futures market to hedge against spot, which is like giving the coin insurance. Pledge it and earn interest: an annualized return of 5%-10% is better than putting it in the bank.


③ The art of cutting losses

If you're holding a worthless coin, stop the loss immediately! Remember: as long as there are green mountains, you won’t worry about firewood. But don't easily cut mainstream coins like BTC/ETH; historically, they have all hit new highs after being halved seven times.



III. Strategies for recovery after liquidation

Only those who have been liquidated can be considered true investors, but one must learn to review:

1. Do not touch the three red lines

① Don't borrow money to recover losses
② Don't use higher leverage
③ Don't blame the exchange


2. Rebuild the trading system

Look back at historical records: Did leverage exceed 5 times? For beginners, it's recommended to stay within 2 times; is your stop-loss set at support levels? Did any single position exceed 20% of total capital?


③ Simulated trading training

Use 1/10 of your capital to do a 3-month simulated trading; only go live when your win rate reaches 60%. Remember: the market never lacks opportunities, but it lacks prepared individuals ready to take a hit.



IV. Future operation guide


1. Keep an eye on two signals


Policy front: Enforcement of domestic mining bans, progress on US ETF approvals
On-chain data: Net inflow to exchanges, fear and greed index


2. Position management mnemonic

"5-3-2 formation": 50% BTC/ETH, 30% potential altcoins, 20% stablecoins for bottom buying. Remember: being fully invested is seeking death, being out of position is waiting for death!


3. Technical indicators

Don’t heavily invest before the weekly MACD golden cross; if the daily RSI is below 30, you can gradually build a position. Don't guess the bottom at this position; wait for a large bullish candle to confirm.

To be frank: in the crypto world, surviving is more important than how much you earn. Everyone should sleep early tonight; tomorrow the sun will rise as usual, and the coins in your hands won’t go to zero. If you have specific questions, feel free to leave a message; we’ll help where we can!