2025-12-25 21:22:22

Recently, the market has been truly crazy—sleep quality has plummeted. Before the trade friction officially started, the crypto world had already collapsed on its own. Bitcoin plummeted 15% in one day, Ethereum fared even worse, dropping 21%, and the total liquidation on the network exceeded $20 billion. Many people are stunned by these numbers. Tariffs and crypto assets shouldn’t really be related, right? Why has the crypto market become the most sensitive weather vane?

Let me break down the underlying reasons and share my own coping strategies.

**The crypto world has long ceased to be an independent kingdom**

Ten years ago, Bitcoin was touted as an "independent economy," but the situation has reversed in recent years—it has become a clear indicator of global risk sentiment. When the Trump administration announced tariffs, global stocks and commodity futures plummeted, and assets with high volatility like cryptocurrencies naturally took the brunt. The reason is simple: a large amount of institutional funds had already entered the market, and as soon as risk appeared, they instinctively sold off high-risk assets to hold cash and protect themselves.

To give a concrete example: in early March, when Trump announced plans to impose tariffs on Mexico, Bitcoin immediately dropped below $83,000; by April, when the "reciprocal tariffs" were actually implemented, the crypto market, along with US stock futures, dove sharply. Today’s crypto market is like a soldier tethered to Wall Street—when it charges forward, it surges wildly; when it retreats, it crashes even harder.

**The real trigger for the plunge was leverage accumulation**

On the surface, the panic was triggered by fears of trade war, but the root cause lies in the leverage bubble within the crypto market itself. The previous continuous upward trend had piled up long contracts to the brim. When prices started to fall, it was like knocking over dominoes—liquidations happened in rapid succession, unstoppable. The big drop at the end of May was a prime example, with many traders using tenfold leverage getting wiped out to zero.

BTC1.4%

ETH1.15%

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ChainDetective

· 11h ago

The metaphor of Wall Street's shock troops is perfect; the crypto world is just a magnifying glass. When institutions panic, the coins are the first to die. Leverage is truly a suicidal game. People who get liquidated with tenfold leverage must have their mentality shattered now. So, risk assets are ultimately risk assets; any notion of independence is just an illusion. When tariffs hit, the coins kneel first. What does that indicate? The discourse power is simply not in our hands.

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zkProofInThePudding

· 11h ago

Wall Street's puppet master, this is the true portrayal of the current crypto world — The decline in sleep quality really resonates, I also stay up every day watching the market and can't sleep — Honestly, leverage is just too devilish; greed always comes with a price — Institutional entry is like this, when the wind blows, they all run away; retail investors are always the last to pay the bill — Tenfold leverage going to zero? Laughable, this is just self-inflicted disaster — The 83,000 USD level for Bitcoin has really become a mental barrier — Risk sentiment shifts, and the crypto market is the first to crash; this logic isn't hard to understand — Macro news like tariffs can hit so hard; the crypto market is quite fragile — The domino analogy was perfect; one falls, and the whole chain collapses — So are there still people talking about independent economies? Wake up, everyone — Wall Street's shock troops are brilliantly positioned, directly hitting the pain points

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LayerHopper

· 11h ago

Wall Street's puppet, this time pulled especially hard

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OffchainWinner

· 11h ago

Damn it, Wall Street has taken another cut, and the leverage guys have really lost everything, even their pants.

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ZeroRushCaptain

· 11h ago

Bro, this is my daily life—reverse indicator itself, I get cut in half when I buy, double when I sell, and this time I got caught in the crossfire again. 200 billion liquidation? I was just part of it. Warriors using tenfold leverage are made like this, haha. The analogy of Wall Street's shock troops is perfect; we are just their debit cards. They say jump, and we jump, with no resistance at all. Leverage accumulation is definitely self-inflicted; blaming the trade war is just an excuse. Wake up, everyone, the enemies in the crypto world have always been in the mirror. Next time I see a continuous upward trend, I’ll just go short and half my position. The incredible rule of the reverse indicator is that simple and brutal.

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