The core reason for the violent market reaction caused by the data information during the day is the chain effect of the macro-financial market. Last night, gold fell 100 points after reaching a new high, while US crude oil and Brent crude oil fell in tandem. US stocks fell across the board, with the Dow Jones Industrial Average falling 1.24%, the S&P 500 falling 1.46%, and the Nasdaq falling 1.62%. Bitcoin fell more than 6,000 points, a 4.2% drop.

In the past 24 hours, the entire network had a liquidation of 940 million, of which Bitcoin and Ethereum only accounted for 320 million, and the rest were all copycats. The total liquidation data accounted for 90% of the longs, and a total of 300,000 people were liquidated. Every bubble clearing before a new high in the market is destined to make some partners no longer have the opportunity to enter the market.

Regarding the unexpected decline of copycats, we may be able to get a glimpse of it from the process of the bull market cycle. According to the way the last two rounds of bull markets went, the rise and fall of the entire sector before and after the halving was often the same. Even for most copycats, after Bitcoin took the lead in rising, they would rebound higher than Bitcoin. However, in this round, only Bitcoin has been strong, while the altcoins have been stagnant, which obviously will bring a large number of bottom-level altcoin leverage speculators.

Because everyone knows that it will rise, and the historical cycle has been highly referenced, this has led to most altcoin players not only holding altcoins at the bottom, but also adding currency-based leverage directly for the purpose of maximizing profits. This is also the reason why altcoins account for 70% of the nearly 1 billion liquidation data. If the maximum decline exceeds 30%, leverage of more than 3 times will be wiped out.