Many friends are curious about the reason for last night's drop, so I will briefly explain here:
Speaking of which, this drop is definitely not due to any negative policies; the market was fine at that time, the U.S. stock market was also performing normally, and last night there was a net inflow of 480 million in Bitcoin ETFs, with major player BlackRock contributing nearly 400 million of that, and ETH ETFs also saw an inflow of 150 million. In short, the data on the funding side is sufficient to support Bitcoin's fluctuation around 100,000, so the reason for the drop isn't here.
Macroeconomically, the latest probability of a December interest rate cut from CME has grown to nearly 90%. If tomorrow night's CPI data is not particularly bad, the December interest rate cut will be a certainty. No matter how you look at it, this is not a negative signal.
I carefully observed that the drop occurred around 12 o'clock, and at that time the market indeed released a very hidden piece of news, namely that Google's CEO announced that Google's latest quantum computing chip, Willow, achieved astonishing results in benchmark tests: completing a standard calculation in less than 5 minutes, which would take top supercomputers over 10^25 years—longer than the age of the universe!
Subsequently, both Musk and OpenAI's Altman expressed amazement and congratulations, and then the cryptocurrency market collapsed, with Bitcoin leading a group of altcoins down.
Moreover, why so many people reported losses, a website statistic shows that the number of people reporting losses this time exceeded 572,000, which is five times more than the 100,000 who reported losses in March 2020. The reported loss amount in 24 hours also set a record, reaching 1.75 billion. This is actually quite easy to explain; it is precisely because there were no adverse fundamental or funding factors last night. There was even a proposal from a Russian legislator to consider Bitcoin as a strategic reserve, MicroStrategy bought another 21550 Bitcoins for 2.1 billion, and Donald Trump's second son commented on crypto saying that rational regulation would make the U.S. a crypto hub. Even the moderately loose monetary policy domestically yesterday was favorable for crypto. In short, with so many positive factors stacking up, those who were trading relaxed their vigilance, feeling secure about holding long positions overnight, which led to such a high amount of loss reporting tragedy.
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