This decline is definitely not due to any negative policy impact; at that time, the market was doing well, and the U.S. stock market was performing normally. Last night, Bitcoin ETFs saw a net inflow of 480 million, with major player BlackRock contributing nearly 400 million of that. The inflow for ETH ETFs was also 150 million. In summary, the data on capital is sufficient to support Bitcoin's fluctuation around 100,000. The key point is that the U.S. stock market hasn't dropped much tonight, and the market continues to explore lower levels, so the reason for the decline isn't here;

On a macro level, the latest CME probability of a rate cut in December has risen to nearly 90%. If tomorrow night's CPI data isn't particularly bad, a rate cut in December is a done deal; from any angle, this doesn’t seem negative;

I closely observed that the time of the decline was 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 remarkable results in benchmark tests: completing a standard computation in less than 5 minutes that would take top supercomputers over 10^25 years—longer than the age of the universe!

Subsequently, Musk and OpenAI's Altman both expressed amazement and congratulations, and then the cryptocurrency market crashed, with Bitcoin and a bunch of altcoins dropping all the way down.

As for why so many people reported liquidations, some websites reported that the total number of liquidations across the network exceeded 572,000, which is five times more than the 100,000 liquidations on March 12, 2020. The amount of liquidation in 24 hours also set a record at 1.75 billion. This is actually quite easy to explain; it was precisely because there were no unfavorable fundamental or capital factors last night, and there was even a proposal from a Russian legislator to hold Bitcoin as a strategic reserve. MicroStrategy added 2.1 billion to purchase 21,550 Bitcoins again, and Donald Trump Jr. commented that rational regulations would make the U.S. a cryptocurrency capital. Even the moderately loose monetary policy in the country yesterday was favorable for cryptocurrencies. In summary, with so many positive factors stacked up, traders let their guard down and felt safe opening long positions overnight, which led to such a high amount of liquidation tragedies.