Many users are curious about the reason for the drop last night. Lao Dong will briefly explain it here:

Speaking of this downturn, it is definitely not due to any Unfavourable Information in terms of policy. The market was fine at that time, and the trend of the US stock market was also normal. Last night, there was a net inflow of 480 million into BTC ETF, with market maker BlackRock contributing nearly 400 million. The inflow of funds into ETH ETF was also 150 million. In short, the fund data is sufficient to support BTC's fluctuation around 100,000, so the reason for the downturn is not here.
On a macro level, the latest December rate cut probability from CME has risen to nearly 90%. Unless tomorrow's CPI data is exceptionally poor, a rate cut in December is a sure thing. This doesn't seem like Unfavourable Information;
I carefully observed that the time of the decline was around 12 o'clock, and at that time the market did release a very hidden piece of news, that is, Google CEO announced that Google's latest Quantum Computing chip, Willow, achieved amazing results in Benchmark tests: completing a standard calculation in less than 5 minutes, which would require a top supercomputer over 10^25 years - longer than the age of the universe!
Later, both Musk and OpenAI's Altman expressed astonishment and congratulations, and then the cryptocurrency market crashed, with BTC leading a group of altcoins falling all the way.
Moreover, why so many people are increasing their positions? According to statistics from a website, the number of people who have increased their positions in this wave exceeds 572,000, which is five times more than the 100,000 people who increased their positions in 2020. The amount of increase in the position reached a record high of 1.75 billion in 24 hours. This can be explained by the fact that there were no adverse factors in the basic and financial aspects last night. Even a Russian legislator proposed to establish a strategic reserve of Bitcoin, MicroStrategy increased its position by purchasing 21 billion and 21,550 BTC again, and even Trump's second son said that rationalizing supervision will make the United States become the capital of encryption. In addition, yesterday afternoon's moderately loose monetary policy in the country is also beneficial to encryption. In short, under the background of so many favourable information stacking up, some traders relaxed their vigilance and thought it was safe to open long orders overnight, which led to such a tragic increase in the position amount.