Why did Bitcoin fall today?
Why did memecoins almost collectively correct?
The reason is actually not complicated; many people just didn't understand the signals.
1. Macroeconomic perspective: Friction between the US and the Eastern power has resurfaced.
The trade situation that had just eased has once again worsened.
High tariffs, stalled negotiations, and tough rhetoric,
Triggered a comprehensive risk-averse sentiment in risk assets.
The crypto market is certainly the first to be affected,
Bitcoin fell more than 2% in the short term, and smart contract coins fell across the board.
2. Derivatives market: Leverage is being ruthlessly liquidated.
The liquidation amount exceeded 800 million.
Options expiration + panic sell-off,
Leading to nearly 220,000 traders being liquidated.
Bitcoin futures' open contracts directly evaporated by 3.7 billion.
This is the market deleveraging and also releasing long-term risks.
3. Memecoins: Rational correction after short-term frenzy
The market value of meme coins shrank by 10 billion in 7 days.
Although popular, the liquidity of funds is far less than that of Bitcoin and Ethereum.
Once funds withdraw, it is easy to trigger a stampede.
This is not the end, but a calm phase after the 'storytelling'.
4. Should we be afraid now?
The fear and greed index has dropped to 69.
This is not extreme panic, but rather the beginning of a healthy adjustment.
From a technical perspective:
If Bitcoin can hold the support zone between 102,000 and 104,500,
it may open up a short-term rebound. If it breaks below 100,000, the key support is at 96,000.
Final statement:
The market always rewards those who are prepared.
Be alert when others are greedy, and stay calm when others are fearful.
Adjustment is not the end, but a signal to get back on board.
