Regarding the recent market trend of Bitcoin, there is an interesting phenomenon worth deeper reflection. A well-known financial media outlet recently issued an annual decline warning, but this time from a different perspective—they emphasized that this is the "first annual adjustment occurring without major bans or obvious black swan events triggering it." To be honest, this statement seems objective on the surface, but it actually highlights the severity of the problem.

Looking back at the market on October 11, the market experienced a fierce volatility. Many reports underestimated the seriousness at that time—the official data indicated a liquidation scale of over a billion dollars, but the actual situation was far more alarming. The total liquidation scale that day approached $20 billion, Bitcoin dropped over 15% within just 20 minutes, and many altcoins suffered devastating losses, with some assets falling more than 80% within 5 minutes, and some even approaching zero at one point.

This is not a sudden scam event, but an inevitable result of "over-leverage stacking and macro resonance" in the crypto market. To understand the essence of this adjustment, two core mechanisms need to be considered.

First is the structural problem behind the liquidation chain. I spoke with several market makers that day, and their description was that "the system entered a paralysis mode." The fundamental cause lies in the dual effects of the automatic deleveraging (ADL) mechanism and liquidity exhaustion. Simply put, the leveraged positions accumulated in the market have reached an extremely unbalanced level—