Overnight, the market sentiment has completely changed.

Last night, people were still discussing the "bull market acceleration," but this morning they woke up to find that Bitcoin plunged to $85,000, Ethereum dropped back to $2,900, and the U.S. stock market, cryptocurrencies, and risk assets all hit the brakes.

Many people's first reaction is: Is it the big players dumping? Bad news? Or has someone else blown up?

But what truly caused the market panic are actually just two words:

Federal Reserve + Bubble

The first thunder: Expectations of a change in the Federal Reserve Chair, the market began to panic.

The Trump administration's attitude towards the next Federal Reserve Chair suddenly shifted, and the previously "unofficially accepted" candidate's support quickly declined.

What does this mean?

It means that the uncertainty of monetary policy is amplifying.

When traders are unclear about future interest rates, liquidity, and the direction of the dollar, the first reaction is only one — to withdraw.

The dollar index stopped falling around 98, and U.S. Treasuries were being bought up frantically, indicating that funds are flowing back into "safe assets."

Meanwhile, the cryptocurrency market happens to be on the side of risk assets.

The second thunder: The AI bubble is starting to be called out by Wall Street.

Bridgewater Associates directly stated:

Tech companies relying on debt to push AI may have already entered a danger zone.

When the chain of "AI + high leverage + debt financing" is questioned, funds will immediately do one thing:

Sell off all highly volatile assets for cash.

Thus, Bitcoin, Ethereum, and altcoins all took hits.

The third and most fatal point: The cryptocurrency market itself can no longer "bear it."

Open futures contracts amount to $135 billion.

$527 million was liquidated in 24 hours.

Long positions were liquidated in a chain reaction, and financing rates fell directly below zero.

This is not a normal correction; this is a systemic pressure release from excessive leverage.

Many people are asking: Is the bull market over?

The real question is not whether it is a bull market.

But rather — which side are you on?

When retail investors are still fantasizing about "a pullback,"

When high-leverage accounts are forcibly liquidated,

When funds begin to reprice risk,

The real money-makers have long been doing something else.

They do not bet on direction; they wait for structure.

They do not chase emotions; they focus on liquidations.

The market will become harder, harsher, and more torturous.

But it is precisely at these times that the gap will be infinitely widened.

Are you being carried away by the market,

Or do you see the market as an opportunity?

The real answer is not in the candlestick charts; it lies in whether you understand the essence of this wave of "panic."