I was woken up by my phone vibrating in the middle of the night, and the group chat was already in an uproar. "Can the account still recoup investment with it being this green?" "What exactly happened?" Looking at the screen full of wailing, I got up and went through all the news and charts before I finally figured out what was going on.

This round of plunge is not a single event, but rather a combination of several critical factors coming together.

**Let's talk about the trigger.** A certain "ancient whale" holding coins for 15 years suddenly took action, dumping $1.3 billion worth of spot assets all at once. This scale is already quite staggering, and it happened to hit a critical technical point — the short-term support level was breached. It's like knocking over the first domino, causing a frenzy of follow-up selling, and the drop quickly approached double digits.

**Looking at the external environment again.** Wall Street's risk aversion has recently surged, with tech stocks leading the decline. Digital assets have been tightly bound to tech stocks over the past two years, essentially "prospering together and suffering together." The already fragile market confidence has been shattered even more by this heavy blow.

**The most ruthless is still the mindset collapse.** Yesterday, the market sentiment index was still at 15, but this morning it opened directly below 10, firmly in the "extreme fear" zone. Retail investors' operating logic is always: the more it drops, the more they want to run; the more they run, the more they trample. Plus, many large investors have not yet emerged from the shadow of the last round of deleveraging, and now they all choose to wait and see, with no one daring to catch the falling knife. The buying pressure disappears, and panic is infinitely amplified.

However, speaking of which, moments of collective panic often hide... (to be continued, let me take a sip of water before we continue with the key data)