Analysis of the Reasons for the Evening Plunge

The core reason for this plunge lies in the fact that the U.S. employment market data is far below expectations. The market originally predicted that the Federal Reserve would enter a rate-cutting cycle in the first half of 2025, but the resilience of the employment market indicates that the Federal Reserve may need to extend the duration of its high interest rate policy, breaking market expectations and triggering panic selling.

In addition, the chain reaction brought about by market adjustments is worth noting. In an emotionally sensitive environment, any negative news could trigger a cascade-like decline, amplifying volatility and further destabilizing the market.

More concerning is that on-chain data shows that the market leverage ratio is approaching the peak levels of the 2021 bull market. A high-leverage environment greatly enhances market vulnerability; once price fluctuations trigger liquidations, it will further exacerbate the scale of price crashes and liquidation waves.

Overall, the current market risks and uncertainties have significantly increased. It is recommended that investors avoid blindly following trends, remain cautious, and steer clear of excessive speculative operations.