[Late Night Financial Daily October 17 Key Financial Schedule] Today's focus on key data and events

Today's Viewpoint
On October 17, 225, the cryptocurrency market experienced a bloodbath, with mainstream cryptocurrencies led by Binance's platform token BNB witnessing a staggering collective plunge. This storm did not come out of nowhere but was the result of multiple negative factors resonating together. For retail investors, understanding the logic behind it and taking the correct response measures is key to surviving the crisis and potentially profiting in the future. A deep analysis of the reasons for the plunge reveals a perfect storm, as this drop is the result of the macro environment's regulatory pressures, industry-specific risks, and market sentiment all acting in concert.
① Macroeconomic Level The global liquidity tightening has reignited the hawkish stance of the Federal Reserve, with the previously released US CPI and PPI exceeding expectations and remaining stubborn. The market is concerned that not only will there be no interest rate cuts in the short term, but there may even be a restart of the interest rate hike process. This has led to a surge in the US dollar index, a low rebound in US Treasury yields, and pressure on global risk assets. As a high-risk asset, cryptocurrencies have naturally become the first area from which funds withdraw. Cash is king; the mentality has reverted. Under the dual blow of high interest rates and concerns about economic recession, institutional investors have massively withdrawn from leveraged assets, recovering liquidity for self-preservation, triggering a chain sell-off in the market. On the regulatory front, the Damocles sword hanging over Binance has once again descended. The US Department of Justice's subsequent actions indicate that the investigation into Binance has not been completely resolved since last year’s settlement. New and stricter charges may be brewing, focusing on the securities nature of its platform token BNB, which directly undermines the fundamental value of BNB. The global crackdown is intensifying, with major economies like the EU and the UK synchronizing their regulatory scrutiny of cryptocurrency exchanges, demanding stricter customer identity verification and proof of fund reserves. This has increased the operational costs and uncertainties for platforms. In the industry, the specific risks of Binance and the emergence of black swan events related to BNB have erupted, as a significant DeFi lending protocol on BNB was exposed to have huge bad debts, triggering a crisis of confidence in the overall asset quality on the chain. BNB, as the fuel and staking asset of the BNB chain, has seen its value directly impacted. Concerns over exchange reserves have resurfaced, with rumors about Binance's insufficient reserves or asset commingling, although Binance has issued proofs. However, in a state of panic, investors are more inclined to sell first and watch later, leading to a panic-driven sell-off and a death spiral of successive liquidations. The initial drop in BNB prices triggered a large number of forced liquidations of leveraged positions using BNB as collateral, and these forced sales further depress prices, creating a negative feedback loop that spread to other mainstream coins like BTC and ETH, ultimately resulting in a market-wide crash. Retail investor strategies during this panic should maintain rationality and seek opportunities amidst the crisis. Faced with such drastic market fluctuations, retail investors should avoid emotional trading and adhere to the following principles and strategies: pause cold trading, calmly observe. In times of extreme market fear and poor liquidity, blindly following the crowd to sell off or bottom-fish is extremely dangerous. The first step is to stop trading and stay away from the market to calm oneself from fear. Check positions and leverage immediately; if you have any leveraged positions or contract loans, prioritize decisive reduction of leverage or liquidation. In a downward trend, leverage is a tool that accelerates death, so it's essential to follow the trend. Assess asset quantities and distinguish the cryptocurrencies you hold; whether they are at the storm center of BNB or core assets like BTC and ETH with stronger fundamentals will determine the focus of subsequent operations. Central strategy for the coming weeks to months is core position management. For heavy investors, if your position keeps you awake at night, consider gradually reducing your holdings when the market rebounds, lowering your position to a level where you can sleep peacefully. Do not aim to sell at the highest point. For light or no-position investors, do not go all in at once to bottom-fish; instead, adopt a dollar-cost averaging strategy combined with key point purchases, setting important support levels such as 50-60% drops from ETH's high to gradually build a bottom position. Asset selection should optimize focus on core assets. In a turbulent market, BTC and ETH should be prioritized as they have the strongest consensus, highest liquidity, and strongest risk resistance. During a recovery, they usually lead the rebound. Be cautious with altcoins. For BNB and other altcoins, their fundamentals and future prospects need to be re-evaluated.