When the market is soaked in blood and chaos, only calmness can be the key to survival. Today’s another sharp plunge, like a compulsory lesson for all traders.

How fierce was the sell-off in the early hours? Bitcoin forcefully broke through the $98,888.8 support line, with a 24-hour decline exceeding 5%. Behind the $28.625 billion USDT trading volume are countless long contracts being liquidated, with margin call notifications flashing like fireworks everywhere.

A screenshot of an investor’s account is truly shocking—$50,000 in principal evaporated to less than $2,000 in just half an hour. Those traders who followed the trend and opened long positions based on the "75.09% large holder long position" data didn’t get to see a rebound; instead, they received forced liquidation notices.

As a seasoned veteran who has been in the market for years, I understand very well the truth behind this "longs crowded and swept" market—ultimately, it’s a game designed to punish greed.

**What exactly triggered this slaughter?**

The first culprit is actually the Federal Reserve. Once the signal of "maintaining high interest rates for the long term" is established, dollar liquidity immediately tightens, and risk assets like Bitcoin are hit first. Traditional institutional funds start to withdraw, and some leading spot ETFs have experienced net outflows for several consecutive weeks.

The second trigger is high leverage. Over the past few years, the crypto market has maintained a leverage level of 18%. Once Bitcoin breaks a key support level, long positions with 20x or even higher leverage tend to explode, triggering a chain reaction. The vicious cycle of "decline-liquidation-sell-off" has long been an internal structural problem of this market.

The third invisible killer is deteriorating liquidity. Liquidity in Bitcoin’s order book is shrinking, making price fluctuations more exaggerated. Under such conditions, even a small dip can turn into a major move.

The lesson from this plunge is simple: greed always comes at a price, and risk management should always come first.