Market Analysis:

On February 4th early morning, the three major U.S. stock indices collectively plummeted, with funds withdrawing from all high-risk assets. Cryptocurrencies, being highly speculative, became the focus of selling. This was the direct trigger for the sharp decline early this morning. BTC was bloodied, dropping below $73,000 for the first time in three months, erasing all gains since Trump's election victory! ETH dipped below $2,110.

The truth behind the early morning crash:

1. The collapse of U.S. tech stocks, with the Nasdaq nearly erasing this year's gains; European stock markets performed poorly; global risk assets were sold off, indirectly suppressing the crypto market rebound;

2. The shadow of the "hawkish" acting Federal Reserve Chair Waller looms, market liquidity expectations tighten, with an 8.9% chance of rate cuts;

3. During previous market turbulence, a large number of retail investors' long positions were liquidated, and high leverage triggered a death spiral;

4. Institutional ETF outflows continued, institutional funds exited the market, retail investors lacked the capacity to absorb the sell-off, and there was no buying support from the market;

5. The U.S. Cryptocurrency Working Group disclosed its work list, which will clarify the scope of crypto asset regulation. In the short term, this may trigger concerns about rising compliance costs, but in the long term, it will benefit industry standardization. However, short-term negative sentiment dominates.

Trading Advice: Quick in and out on both longs and shorts!
Special Reminder: Zero out leverage! Prioritize holding cash and observing, never bottom fish!