Waking up, the entire market is in a bloodbath.

Bitcoin plunged directly from the approaching $90,000 position, barely stabilizing at around $86,000. Ethereum couldn't hold either, breaking the psychological barrier of $2,900. As for SOL and Dogecoin? Don't even mention it, starting with a decline of 7%-8%, it's a sight to behold.

Worse is yet to come — over the past 24 hours, more than 170,000 people worldwide have directly faced liquidation. What does that mean? It means those who leveraged heavily to bet on a rise had their accounts forcibly cleared, leaving them with nothing, not even their principal. A rough estimate shows that the funds evaporated in this wave exceed $500 million. Bulls are probably regretting their decisions deeply.

**Behind this wave of plunge, two things are at play:**

First, the Federal Reserve is stirring things up again. The market is now extremely sensitive to policy changes, and any rumor can cause a stir. Today, there were rumors that Powell was going to resign, which were quickly denied, but it already scared the tightly wound investors. More critically, with the December monetary policy meeting approaching, and Trump suddenly jumping in to say "the next Federal Reserve chairman has already been chosen," this combination has made it difficult for anyone to bet on the direction. It's time to run for cover.

Secondly, internal momentum has also encountered problems. The previous surge was too aggressive, and it is now clearly overextended in terms of stamina. From the data, it is evident that the inflow of funds into Bitcoin ETFs in the U.S. has significantly slowed down recently, with no new large capital stepping in. Coupled with the selling pressure that has persisted since the peak in October, this decline has forcibly eliminated high-leverage speculators.