Today the market is really fierce, Bitcoin is plunging along with the entire encryption circle.

Let’s first look at the situation in the US stock market— the Dow Jones plummeted by 427 points, closing at 47289 points, abruptly ending a five-day streak of gains. The Nasdaq and S&P also didn’t escape unscathed, closing down 89 points and 36 points respectively. Even worse, the Philadelphia Semiconductor Index is also bleeding.

The focus is here: Bitcoin plummeted over 6%, directly breaking through the $86,000 mark. This wave of decline is not an isolated event; it has dragged down the US stock market and all concepts related to encryption like a domino effect. Meanwhile, in the Japanese market, both stocks and bonds are suffering, causing a global bond market sell-off, with US bond yields rising, and the sentiment in the US stock market naturally isn't great.

The economic data is also weak. The US ISM Manufacturing PMI for November dropped to 48.2, marking the largest decline in four months, and it has been in the contraction zone for nine consecutive months. The manufacturing sector continues to be sluggish, putting significant pressure on the economy.

What is the market thinking now? With such a weak PMI, calls for a Federal Reserve rate cut in December will certainly increase. But the question is, with Bitcoin plummeting as a barometer of risk sentiment, funds may become more conservative. The fluctuations in the Japanese market are still spreading outward; will the chain reaction in the bond market continue to amplify? This needs to be closely monitored.

To be honest, the index is oscillating at a high level, and the short-term correction risk has not passed. Weak U.S. data has raised expectations for interest rate cuts, but global funds are clearly in a wait-and-see mode, with particularly high pressure on tech stocks and the encryption sector. This week, there will also be ADP employment data and PCE inflation data released, so the market is expected to continue to fluctuate. Everyone should be cautious in their operations.