What exactly caused the rapid plunge of the Crypto Assets boom into the ice cellar?

First of all, the significant pullback in the market currently reflects the widespread risk-averse rotation of funds triggered by the resonance of macroeconomic adversity.
Secondly, investors are also digesting the "recalibrated" liquidity expectations due to the lowered probability of a Federal Reserve rate cut in December. Related to this, the market atmosphere is mixed with uncertainties such as inflationary pressures, trade disputes, and missing information in the U.S. October employment and inflation reports.
In addition, the artificial intelligence industry has experienced a retreat in investment due to excessive capital input, which has begun to spread comprehensively from the stock market. The three major U.S. stock indices have currently formed a trend-breaking pattern, marking the first time in a long while.
The decline in stock indices has led investors to sell other assets to meet margin requirements for some derivative assets, which may have an impact on the Crypto Assets market, and this action could also create a feedback loop across markets.

At the same time, the drastic change in short-term market sentiment has prompted investors to spontaneously prepare for a larger downturn. Data from the options market shows that traders' demand for protective measures at downward points such as $85,000 and $80,000 for Bitcoin has surged significantly.
Some Crypto Assets whales and "miners" are also executing strong sell-offs. After the price fell below key levels, leveraged long positions were liquidated, accelerating the price decline.
However, these are more dominated by short-term risk release and position resetting, rather than a conclusive directional prediction from the main market participants.
Willem Schroé, the founder of Botanix Labs and an expert in Bitcoin layer-2 network technology, stated that despite the continuous sell-off of Bitcoin putting immense pressure on the market, similar leveraged position liquidations have always played an important role in the healthy operation of the market.
Schroé believes that the drop in the price of Bitcoin below $90,000 has not changed the grand narrative of the market, "Every historical cycle of Bitcoin has seen a 20%-30% correction to clear leverage, and these pullbacks are often the prelude to the next major bull market."