December 12th's market movement indeed caught many off guard. Bitcoin first plummeted below the $92,000 mark, then bounced back like a spring, reaching above $93,000 at one point, causing the entire market to ride a roller coaster.

Ultimately, it's all about what the Federal Reserve is doing. On the 10th, they announced their third rate cut of the year, lowering the interest rate range to 3.50%-3.75%. However, the market's reaction was completely unanticipated. You might think that a rate cut would be good for risk assets, right? But traders clearly didn't see it that way—worries about future policies immediately scared off capital.

Even more concerning was that the US initial jobless claims soared to 236,000 last week, the largest weekly increase since the COVID-19 outbreak in March 2020. Once this data was released, market sentiment instantly changed.

Leverage is a double-edged sword: it can boost gains in favorable conditions but can also be a death knell in adverse scenarios. A few hours after the rate cut announcement, approximately $440 million worth of crypto derivatives positions were liquidated. This rapid and aggressive deleveraging naturally caused short-term volatility to spike.

However, traditional stock markets showed mixed performance: the Dow rose 1.34% to a new all-time high, while Nasdaq fell 0.25%. The crypto market generally declined, but mainstream opinions see this more as technical adjustment and deleveraging rather than a trend reversal. After all, funds are still flowing into spot Bitcoin ETFs, and Bitcoin holdings on exchanges continue to decrease...