Today, during this sudden fall in the market, many frens probably felt a tightness in their hearts while watching the charts. Let's discuss what exactly happened behind the scenes.

To be honest, this adjustment is the result of multiple overlapping factors. First, the Bank of Japan signaled a possible interest rate hike, which instantly heightened expectations of tightening global liquidity, putting pressure on risk assets; second, the market reported that some large institutions might be forced to sell crypto assets due to stock price fluctuations and funding chain issues, further amplifying the selling pressure; in addition, a certain mainstream stablecoin faced a change in outlook from rating agencies, triggering a series of chain reactions. On a macro level, the expectation for the Federal Reserve to cut interest rates has been repeatedly postponed, and the overall market sentiment is already fragile. When these things coincide, the downward trend ensues.

**What should retail investors do now?**

**First, defense comes first.** Impulsiveness is a big taboo at this time. If you can reduce leverage, do so, and even directly clearing it to zero is not too much. The principal is your qualification to continue playing, so be sure not to be overly ambitious at this time.

**Secondly, do not blindly guess the bottom.** In a downtrend, what you see as a "golden pit" is very likely just a platform halfway down a cliff. Control your hands, don’t rush to shoot all your bullets; there are too many cases of buying the dip halfway down.

**Finally, treat this as a learning window period.** When the market cools down, it is a good opportunity to settle down and study. Go check the fundamentals of the projects you have been paying attention to for a long time, track the movements of that smart money, and do your homework for the next round of opportunities.

Remember one thing: the market is never a one-way movement. There is no perpetual fall, nor is there a perpetual rise. What you should do now is not to panic, but to preserve your strength and stay clear-headed. Keep the green hills, and when the real wind comes, you will be able to stand firmer and go further than others.