The cryptocurrency market experienced a clear correction in the past half hour, and many people are asking what exactly happened. Essentially, two forces are acting simultaneously: on the macro level, the Federal Reserve's interest rate cut expectations are adjusting, US Treasury yields are rising, and funds are starting to withdraw from high-risk assets; on the trading level, leveraged long positions are being liquidated en masse, with over $1 billion in positions liquidated within just 24 hours. The Ethereum futures market was hit hardest, and the chain reaction caused the market to plunge sharply.

For those still in the market now, this is not the time to consider bottom-fishing, but rather to prioritize risk management. Several suggestions are worth noting: first, check your leverage ratio in your account; if it exceeds 5x, it’s best to reduce it first. With the current volatility, even a small-scale correction could trigger liquidation; second, consider adjusting your portfolio by allocating some funds to mainstream cryptocurrencies like Bitcoin and Ethereum, as well as stablecoins. Don’t put all your chips into small-cap coins; finally, continuously monitor the speeches of Federal Reserve officials and the Bitcoin spot inventory levels on major exchanges, as these two signals often reflect market trends in advance.

At the end of the day, survival in the crypto market is far more important than quick riches. One leveraged liquidation can wipe out months or even years of gains, so managing risk and protecting principal are the foundation of long-term participation in this market.