Today's hot topic on Binance Square #加密市场回调 actually reflects a normal correction after a rapid surge. Bitcoin has seen its short-term decline expand after reaching a new high, leading Ethereum and mainstream altcoins to collectively pull back, resulting in a significant reduction in overall market capitalization in a short time, with leveraged funds being centrally liquidated, and sentiment quickly shifting from 'only talking about the bull market' to 'first, preserve profits'.

This round of adjustment has roughly three reasons: first, the macro environment has turned cautious, with global risk assets generally under pressure, and funds withdrawing from high-risk markets; second, the previous surge was too large, with the technical indicators clearly overbought, leading some institutions to take profits at high levels, actively creating a 'healthy reshuffling'; third, the long-term accumulation of leverage in the futures market means that once prices turn around, the decline will be amplified, triggering a chain of liquidations and further intensifying volatility.

For ordinary investors, a more important question is not 'why is the market falling', but 'what should I do'. If you have a long-term positive outlook and reasonable positions, such fluctuations of 10%–30% are mostly just a 'halftime break' in a bull market; but if you are fully invested and frequently chasing highs and cutting losses, each adjustment could turn into a disaster for your account.

A correction is not the end of a bull market, but a process of changing hands. Whether you can hold onto your chips and optimize your position structure during fluctuations is more important than staring at the screen watching K-lines.

The above content is only personal opinion and does not constitute any investment advice.