This round of sharp decline came unexpectedly, and many people were watching the market so intently that they questioned their lives. With the decline happening like this, several underlying reasons are intertwined. Let's break it down:

**The Fed's "U-turn" play is really slick**
The core issue is right here. Previously, the market was holding onto expectations of a rate cut, but recently Fed officials have been making tough statements, signaling very clearly—"Rate cut? Why rush?" The hope for a December cut has been basically dashed. Without the support of liquidity expectations, high-risk assets like $BTC and $ETH are being sold off directly. The speed of capital withdrawal is so fast that it’s hard to keep up.

**Economic data "good" to the point of discomfort**
Non-farm employment data exceeded expectations and was surprisingly strong. Normally, this would be good news, right? But for the crypto circle, it’s bad news—the better the data, the more reason the Fed has to keep interest rates high. Market liquidity continues to tighten, and risk appetite naturally drops. Seeing this momentum, everyone flees from high-volatility assets, with the crypto sector taking the biggest hit.

**Capital flight + leverage blow-up, a stampede effect is coming**
Recently, Bitcoin spot ETFs have been experiencing continuous net outflows, with institutional funds pulling back. The buying power is already weak, and when prices plunge, those with high leverage positions instantly collapse. Over the past 24 hours, the total liquidation amount across the network exceeded $800 million, with over 200,000 people being liquidated. This forced selling, combined with the downward push, creates a "decline → explosion → further decline" death loop. Spiral acceleration makes the decline uncontrollable.

**Panic spreads, confidence is completely shattered**
The Fear & Greed Index has already dropped into the "Extreme Fear" zone. Various security incidents happen frequently, with news of hacker thefts popping up every now and then, further fueling panic. Many people's mental states are collapsing—they sell first and ask questions later. Once panic selling starts, it becomes very difficult for the market to stabilize.

**In summary**
The overall situation is that macro expectations have shifted (hawkish Fed), capital is draining (ETF withdrawals), and internal structures are fragile (high leverage blow-ups), all these pressures stacking up and exploding. In the short term, market sentiment will find it hard to improve, and everyone is watching closely to see what the Fed will do next. Buckle up, this volatility might continue for a while.