Today the market took a hard hit! Bitcoin once fell over 8%, with more than 260,000 people across the network getting liquidated, and the data is shocking. Don't panic just yet; let's analyze it rationally.

Three main factors are at play behind this round of adjustment:

First, the Bank of Japan signaled an interest rate hike, leading to a tightening of global liquidity expectations, with risk assets being the first to suffer. Secondly, market rumors suggested that certain large institutions were forced to sell their holdings due to liquidity pressure, exacerbating the downward trend. Finally, on a macro level, the expectation of a Federal Reserve rate cut has been repeatedly postponed, and institutions have begun to control their risk exposure. With several factors converging, market sentiment naturally collapsed.

For ordinary investors, the most direct impact is that high leverage easily leads to Get Liquidated, and chasing highs and cutting lows can easily result in being trapped. But to be honest, volatility is part of the daily routine in this market, and there is no need to panic excessively.

What should we do now? Here are a few suggestions for your reference:

First, immediately check your position allocation; if your leverage is too high, reduce it quickly. Protecting your principal is more important than anything else. Second, don’t rush to catch the bottom! Before there is a clear reversal signal in the trend, hold your hands and don’t make random moves. Third, use this time to study the fundamentals of projects more, and look for suitable entry opportunities when the market stabilizes.

In plain terms, every major adjustment is actually an opportunity for reshuffling. The key is whether you are adequately prepared. Stay calm, do not blindly follow trends, and the bigger the storm, the more you need to maintain your mindset! The market is always full of opportunities; what is lacking is the preparation to seize those opportunities.