The crypto market has been fiercely declining over the past week, with BTC breaking below the $90,000 mark, altcoins collapsing collectively, and the total liquidation amount across the network surpassing 10 billion. Many aggressive traders have been liquidated and exited in this extreme market condition. It may seem sudden, but the underlying logic is quite clear. Today, we will analyze the true causes behind this decline.

**The macro environment is the primary killer**

Global trade tensions are intensifying, and geopolitical instability is prevalent. Large capital flows into gold and US Treasuries for safe-haven assets. At this moment, it becomes evident that the narrative of BTC as "digital gold" is actually fragile during real risk events—when institutions face liquidity crises, their first reaction is often to sell crypto assets for cash rather than hold their positions. As a result, BTC becomes highly correlated with US stocks and commodities, making it impossible to move independently.

**High leverage is the accelerator**

Previously, prolonged low-volatility markets had numb many traders, leading them to open 50x leverage and full positions at will. After BTC broke the key technical level of 92,000, forced liquidations triggered chain reactions, pushing prices down layer by layer. Long positions were forcibly closed, liquidity became tighter, and selling pressure continued to increase—this self-reinforcing spiral of decline made the 750 million RMB liquidation scale not surprising at all.

**Technical and psychological double whammy**

Once the psychological defense line breaks, recovery becomes very difficult. Breaking the $90,000 psychological barrier intensified retail panic, institutions began to cut losses, and technical selling could not be stopped. Coupled with futures and options expirations, market makers reducing their positions, and a severe lack of order book depth, a large order can directly penetrate multiple price levels, causing a rapid decline with no buffer.

**Remember these iron rules**

High leverage may seem like a quick way to get rich, but in reality, it is a tool for rapid bankruptcy. Profits from 10 successful trades can be wiped out in a single sharp decline, often even resulting in losses. If you truly want to participate in leveraged trading, keep it within 3x, strictly set stop-losses, and always reserve room for position adjustments—this is the way to survive longer. No one can accurately predict every market wave, but learning to defend is often more important than attacking.