The market turbulence on Christmas Eve is a textbook-level risk case. A major exchange recorded this scene: BTC suddenly plummeted from $87,600 to $24,100 in seconds, only to rebound above $87,000 shortly after—70% volatility is not a technical glitch but a true reflection of market liquidity exhaustion.

The trigger is clear: a security incident at a large trading platform sparked panic, coupled with the cooling of the Federal Reserve's rate cut expectations at year-end, causing market risk appetite to shrink rapidly. As a result, over 73,000 investors were liquidated within 24 hours, and $104 million in funds vanished instantly. This is not an isolated case but an inevitable outcome in high-leverage gambling.

An interesting comparison emerges. BTC is often packaged by institutions as "digital gold," but this view overlooks a core issue: gold has 5,000 years of civilization support, scarcity, and industrial demand underpinning its value, whereas digital assets have a much weaker value chain. A look at history makes it clear—after the frenzy in 2017, there was a 70% halving in 2019; price fluctuations are fundamentally driven by capital sentiment.

Global regulatory divergence is also worth noting. Europe and the US are trying to integrate crypto into the financial system, while some major economies are taking a completely different route—banning domestic trading and cutting off channels for financial institutions. The core logic is consistent: these assets lack a foundation of real economic backing and cannot carry out the functions of currency.

The lesson for investors from this flash crash is not complicated: respect market volatility, stay away from leverage tools, and focus on asset allocations with real value support. Wealth preservation has never relied on risky gambling but on risk awareness and a balance of asset quality.