The plummet in the early morning was indeed alarming, and the short-term big dump of BTC and ETH made many people start to doubt whether the bull run was doomed. However, upon calmly looking at the data, this drop seems more like a chain reaction triggered by a sudden tightening of liquidity, rather than a fundamental collapse.

The timeline is very clear: The U.S. Treasury recently released $163 billion in government bonds, which has significantly drained the market's liquidity. Shortly after, officials from the Federal Reserve came out to dampen expectations, saying not to expect interest rate cuts in the short term. As soon as these two signals were released, funds immediately began to withdraw from high-risk assets— the cryptocurrency market naturally took the brunt of it.

In plain terms, this wave of decline is not due to Bitcoin's own issues, but rather because the external funding environment suddenly changed. When liquidity tightens, those with high leverage are the first to get liquidated, and panic spreads, causing retail investors to follow suit, resulting in a price drop. However, such policy-driven short-term fluctuations have occurred many times in history, and in hindsight, they are always seen as opportunities rather than disasters.

If you still have bullets in hand, you can actually consider building your position in batches now. Don't go all in at once; place an order to average down every time it falls by about 5%, which saves you a lot of worries compared to chasing highs. Of course, the premise is that you must control your position well and not put all your wealth in — after all, policies change too quickly, and no one knows how long this "water shortage period" will last.

The key is still to keep an eye on the Federal Reserve's movements. Once there are signals of easing, such as stopping the balance sheet reduction or hinting at the possibility of interest rate cuts, the speed of capital inflow will be very fast. At that time, a V-shaped rebound is not impossible, and those who are cutting losses now are likely to regret it.

As for the recent trends of certain altcoins, to be honest, many of them are just bubbles built on emotions and capital. When the overall environment is not good, it's normal for these assets to fall harder. If the project itself has no real support, no matter how much you try to catch the bottom, you are just catching falling knives.

In short: market volatility is the norm, but panic selling often turns out to be a mistake in hindsight. Rational judgment is more important than emotional actions; at the very least, don't make the most aggressive decisions when you're the most panicked.