"Today during the lunch break, a thrilling flash crash occurred in the market, spreading panic among investors. Bitcoin's intraday low dropped to 79937, showing significant retracement from previous highs; Ethereum also did not escape, reaching a low of 2639 and breaking through key support levels. Even more concerning is that the altcoin sector showed a collective downward trend, becoming the "disaster zone" in this adjustment—SOL's daily decline reached 12%, hitting recent lows; LTC plunged to the 80 line, creating a new phase low; other small and medium-sized coins varied in their decline, with most coins dropping over 10%, leaving the market in chaos. The main reason stems from a sudden "hawkish storm" that completely disrupted market rhythm just as most participants were eagerly awaiting the Federal Reserve's interest rate cut window to open in December. Several heavyweight officials from the Federal Reserve collectively released strong signals, and the interest rate cut door that seemed to be gradually approaching is quickly closing, with the highly liquidity-sensitive encryption market being the first to bear the brunt.

==================================
💎
💎
==================================
The seemingly sudden flash crash is actually the inevitable result of multiple overlapping uncertainties, and the Federal Reserve's policy shift is merely the "last straw" that broke the market. Firstly, the reversal of the Federal Reserve's policy expectations is the core inducement for this adjustment. Previously, based on the data of falling inflation, the market generally bet that the Federal Reserve would start a rate-cutting cycle in December, leading to a large influx of liquidity into the crypto market, pushing up asset prices. However, with several Federal Reserve officials collectively "hawkish" and clearly stating that the current inflation level has not yet reached the long-term target, an early rate cut might trigger the risk of inflation rebound, which directly shattered the market's rate-cutting fantasy and led to a faster withdrawal of funds from the high-risk crypto market. Additionally, the ongoing turmoil in the international situation has cast a shadow over the market. The repeated geopolitical conflicts and escalating trade frictions between major economies have led to a continuous decline in global risk appetite, with funds increasingly favoring safe-haven assets like gold and U.S. treasuries, while crypto assets, as high-risk varieties, have naturally been neglected. At the same time, the previous 43-day government shutdown in the United States and its subsequent "aftereffects" continue to ferment, further exacerbating market uncertainty. During the shutdown, the release of U.S. economic data was hindered, and government services were limited, leaving the market confused about the fundamentals of the U.S. economy; after the shutdown ended, potential risks such as fiscal spending adjustments and the debt ceiling issue surfaced, further suppressing market sentiment.
==================================
💎
💎
==================================
The current downtrend in the encryption market exhibits strong continuity. In the previous phase, the market formed a unidirectional upward trend driven by interest rate cut expectations, accumulating a large amount of profit-taking positions. As the positive expectations fell through, the profit-taking positions concentrated and triggered a chain reaction. Although there was a brief rebound in the market this afternoon, the rebound strength was weak, failing to attract new capital into the market, instead providing an opportunity for bears to exert pressure again, with bearish momentum further accumulating. From the trading volume perspective, the volume significantly increased during the decline, indicating a strong market selling intention, with the short-term bearish dominance clearly established. In light of the current market situation, investors need to remain rational, avoiding blind bottom-hunting or panic selling. From an operational strategy perspective, the evening can continue to follow the approach of "rebounding to short," laying out short positions based on the resistance levels converted from previous key support levels, while strictly setting stop-loss orders to guard against the risk of a sharp rebound in the market. For medium to long-term investors, this adjustment also provides an opportunity to filter out quality assets, with a focus on encryption projects that have high technical barriers, clear application scenarios, and strong team strength, gradually laying out positions after the market sentiment stabilizes and the downside risks are released.