Last night, the crypto market experienced a significant fluctuation. Bitcoin failed to hold the $87,000 level, and mainstream cryptocurrencies such as Ethereum, SOL, XRP, and others responded with declines, generally ranging between 3% and 5%. Smaller and mid-cap coins plunged even more sharply, with some projects being cut in half. According to statistics, over 140,000 investors faced margin calls in this wave, with nearly 270 million dollars in funds evaporating instantly. The logic behind this sharp drop is worth analyzing. On one hand, mainstream coins have been sideways for a long time, and retail investors hoped for a rebound toward the end of the year, only to be met with an unexpected plunge. Ethereum broke below the critical support level of $3,000, shattering many investors' psychological defenses. On the other hand, the shift in the Federal Reserve’s policy signals acted as a trigger. The latest data shows that the probability of the Fed cutting interest rates further in January next year has dropped to only 24.4%. Powell’s hawkish stance directly extinguished market hopes for easing, prompting institutional funds to reverse and short aggressively, strategically targeting retail traders’ positions. In this situation, investors who increased their positions during the sideways period find themselves in the most awkward position, with leverage amplifying the risks. When the tide recedes, it becomes clear who is swimming裸—currently, the rebound space is limited, and we should instead be vigilant about whether this is a short-term correction or the start of a larger bear market. What are your thoughts on this wave of market movement? How are your current positions?