Last night's crypto market felt like it was struck by a nuclear bomb. BTC and ETH led the decline, with the total liquidation of contracts across the network soaring to over $900 million—this is not just a simple technical correction but the result of multiple forces precisely targeting the market.

First, let's look at the macro level. Under the Federal Reserve's continued tightening policy, the high-interest-rate environment has caused funds to flee risk assets madly. As risk-free yields rise, who still wants to gamble on cryptocurrency volatility?

Next, observe institutional movements. The outflow data from ETFs is alarming; the previously highly anticipated institutional entry has turned into a collective retreat. When retail investors see the market direction isn't right, panic selling immediately ignites a stampede.

Long-term whales also can't sit still. With tax season approaching, large holders begin to liquidate positions to lock in profits or cut losses, adding selling pressure like an avalanche crashing into the market.

The most severe is the chain reaction of leverage. When high-leverage contract traders get liquidated, forced liquidation orders flood into the market, accelerating declines and creating a death spiral. The collapse of basis trading is even more damaging—institutions' spot ETF and futures short arbitrage strategies, forced to close when the spread narrows, further drain liquidity.

Order books are as thin as paper; any selling pressure can create huge gaps. This wave of sharp decline has not only shattered prices but also pushed the entire market's confidence to the brink of rebuilding.