This round of Bitcoin flash crash came unexpectedly—just a second before, the market was still yearning for the hundred thousand dollar mark, and the next second it collectively fled in a stampede. In simple terms, three forces struck at the same time, cutting the market in half.

**The Federal Reserve suddenly changes its stance**
Powell played the "interest rate cut suspense" this time. Originally, traders thought the interest rate cut in December was a done deal, and the futures market was filled with bets on it. As a result, with a single sentence from old Powell saying "the data is still not clear enough," it directly extinguished the fantasy. The expectation of an interest rate cut dropped from a certainty to a 60% probability, and worse, the government shutdown led to a complete halt in economic data. In this foggy situation, who would dare to hold onto BTC with high volatility overnight? The first reaction of institutions is to cut positions and stop losses.

**Wall Street is retreating**
This wave of increase is essentially driven by institutional funds piling up. But looking at the ETF data now is simply dismal—$607 million were withdrawn in a single week, with a total outflow of $4.8 billion in a month. Those once-popular premium products are now being offered at a discount with no buyers. The most intuitive signal is: when leading institutions start to reduce their positions, what reason do retail investors have to hold on? The speed of capital withdrawal is much faster than expected.

**The technical layer has already crashed**
The chartists can all see that the key support levels have been consecutively breached. Although the original text does not elaborate (content is truncated), anyone who has seen candlestick charts understands that when a classic bearish signal like the "death cross" appears, algorithmic trading systems automatically trigger sell orders, creating a chain reaction. The deterioration of technical indicators combined with negative fundamental factors leads to a double blow that the market simply cannot withstand.

The current question is: with these three knives stabbing down at the same time, is it a short-term adjustment or a trend reversal? At least until the Federal Reserve's stance becomes clear, the market is likely to find it difficult to regain confidence.