Last night, the crypto market experienced another round of severe fluctuations. Bitcoin fell by 8% in a single day, with 260,000 investors getting liquidated across the network, and the total liquidation amount reaching $970 million. However, behind this bloodbath, the real trigger may not be internal market factors.

Former BitMEX CEO Arthur Hayes pointed out sharply: The Bank of Japan has signaled an interest rate hike, global liquidity expectations are tightening, and risk assets are under pressure. This shift in macro-level monetary policy is often more lethal than mere market fluctuations. Just when it rains, it pours; S&P has lowered the credit rating of USDT at this time. Although Tether quickly responded that it holds over 30 billion dollars in reserve assets, market sentiment has already been ignited.

Interestingly, while retail investors panic sell, institutional investors show a completely different attitude. MicroStrategy CEO has clearly stated: they will not sell Bitcoin below net asset value. The co-founder of Threshold Network also emphasized that the current market turmoil is essentially a chain reaction triggered by changes in liquidity expectations, rather than a collapse of the fundamentals.

This reminds me of the collapse of LUNA last year - similarly, it was a seemingly insignificant "small piece of news" that triggered a domino effect in the entire market.

However, the sharp declines during a bull market often have dual attributes. On one hand, they cleanse high-leverage speculators, while on the other hand, they create a window for long-term investors to reposition themselves. Historical data shows that after similar panic sell-offs, the market typically welcomes structural recovery opportunities. The key is to differentiate between short-term emotional fluctuations and long-term trend changes.

At the current stage, the Federal Reserve's policy meeting is approaching, and the market is highly sensitive to Powell's statements. The shift in the Bank of Japan's monetary policy will indeed affect global capital flows, but Tether's monthly income from U.S. Treasury bond interest alone reaches $500 million, which also reflects that the stablecoin system is not as fragile as the market's panic sentiment describes.

For ordinary investors, this round of adjustment feels more like a stress test. Accounts that blindly leveraged were liquidated, while participants who truly understand the market cycle might be looking for the right entry point. Fear and greed are always the two poles of the market; the question is, which side are you on?