I finally figured out the real trigger for this big dump. Several claims circulating in the market are fundamentally unfounded—like the tightening of domestic regulations; if that were the case, it would have fallen over the weekend, not dragged into a weekday. There are also rumors that Fed Chairman Powell is going to resign, which is even more absurd. His term doesn't end until June next year, and this person has always acted with principles; even under pressure from Trump, he wouldn't easily compromise. The possibility of him leaving early is basically zero.

The real trigger was actually the interest rate hike signal released by the Bank of Japan. Between 7 and 8 this morning, as soon as the news broke, the exchange rate of the yen against the dollar plummeted, and the crypto market almost collapsed in sync; the timing was simply terrifyingly precise.

The Bank of Japan's interest rate hike is a持续的利空因素 for the entire market. In recent years, global liquidity has basically relied on major central banks' monetary easing to maintain, and the market is like a reservoir, barely maintaining balance. Now that the Bank of Japan has suddenly turned to tightening its monetary policy, it is equivalent to shutting off the faucet that should have been supplying water, and even starting to drain water. This reversal of liquidity is something the market simply cannot bear.

Next, we will see if the US can exert some influence on Japan. If the Bank of Japan continues to adhere to its interest rate hike policy, this round of adjustment may not be nearing its bottom. After a bloodbath in the market, we can pay attention to some resilient assets and consider gradually positioning once the sentiment stabilizes.