In one night, the crypto world witnessed what it means that "rumors are more powerful than a tiger."

Yesterday, the market suddenly went haywire—triggered by a rumor about a potential shake-up in the Federal Reserve's senior management. Although this rumor has not been confirmed by officials, it was enough to throw the entire crypto world into a brief panic. The price of Bitcoin plummeted, dropping nearly 5% at one point, and even fell below the psychological barrier of $43,000. The spot market shuddered, and the futures market was in a state of despair.

According to incomplete statistics, the total liquidation amount of contracts across the network exceeded 400 million USD within 24 hours. Behind this number are countless long positions being forcibly liquidated under leverage. Some faced complete liquidation, while others cut their losses and exited the market. The bloody data once again reminds us how sensitive this market is to macro news, especially any slight movements related to monetary policy.

Ironically, the "trigger" that caused this stampede doesn't even know if it's true or not. But the market has already responded with real money—emotional fragility and excessive leverage; these two old problems remain the Achilles' heel of the crypto world.

However, looking at the longer timeline, many analysts believe that as regulations become clearer and institutional funds continue to enter the market, the volatility of the crypto market will gradually narrow in the long term, and the entire ecosystem will become more mature. Short-term surges and drops are normal, but the long-term trend will not change direction because of an unverified rumor.

In the end, this incident taught all investors a lesson: when it's hard to discern the truth of information, don't rush to go all in. Control your leverage, set your stop-loss, and distinguish between short-term noise and long-term signals—these age-old principles can save your life at critical moments. The market will always be there, but once your principal is gone, it's truly gone.