The sudden drop in the early morning was indeed severe, with Bitcoin plummeting 15% within half an hour, causing the market to evaporate over $200 billion in value. There are cries of despair all over social media. However, having navigated the crypto market for many years, my deepest feeling is that opportunities are often hidden behind big dumps, and it’s not the end of the world.

Many people panic when they see all red on the board, but they haven't figured out why this fall is so severe—simply put, it's not that Bitcoin's fundamentals have collapsed, but rather that the market structure has malfunctioned in the short term, compounded by the macro-level liquidity being forcefully tightened.

**Source Analysis: Liquidity Crisis, Not Value Crisis**

The trigger for this plummet is actually very clear. First, the macro pressure suddenly intensified. As soon as the Trump administration's remarks on tariffs came out, global risk preference immediately turned around, and large funds quickly fled from high-risk assets. At the same time, the expectation of interest rate cuts by the Federal Reserve disappeared, and bond yields instead rose, thus a significant portion of liquidity in the capital market was drained.

Secondly, the leverage bubble in the market was burst at this moment. Before the big dump, the entire market's contract leverage ratio had remained high, and once Bitcoin pierced through the key support of 110,000 USD, it instantly resulted in nearly 20 billion USD in forced liquidations. The craziest part is that the proportion of long positions reached 85%—this is a typical "long squeeze" phenomenon.

Moreover, the performance of the exchange system during extreme market conditions has been unsatisfactory. Some major exchanges experienced system delays during this big dump, with some even halting trading altogether, which only added fuel to the panic in the market. There's also a ridiculous phenomenon where certain stablecoins decoupled to $0.65 within the exchange, while the on-chain price remained pegged at $0.99—clearly indicating that the internal liquidity of the exchange has dried up, leading to a complete pricing failure, and it is not the projects themselves that are at fault.

But the key point here is that the fundamentals of Bitcoin have not actually deteriorated. The attitudes of institutional investors, network activity, and the behavior of long-term holders—these indicators are still there and have not suddenly collapsed.