Recently, the crypto world has seen another intense event. Bitcoin was forcibly pushed down to $83,973, a single-day drop of over 8%, shrinking more than one-third from the $126,300 high set in October. For a time, voices claiming the "bull market is over" flooded the scene.

Having been in this industry for many years, I’ve experienced numerous cycles. Honestly, this sharp decline looks fierce, but it’s definitely not the opening act of a bear market—it’s more like an opportunity handed to rational investors by the market.

So why did this drop happen so rapidly? It’s not just one or two reasons. The U.S. Treasury Department withdrew about $200 billion from the market due to the government shutdown, which is like suddenly cutting off the market’s blood supply. The Federal Reserve also has no intention of cutting interest rates quickly, making dollar liquidity even tighter, with high-risk assets like Bitcoin bearing the brunt.

But the most critical issue is internal market leverage. Many people borrowed money to buy coins at high levels, and once the price fell below certain key levels, automatic forced liquidations triggered a chain reaction. A small dip → margin calls → more liquidations → further price drops → a new round of liquidations. This vicious cycle was formed. Just on December 1st alone, over 190,000 positions were liquidated, totaling $553 million. That number is quite staggering.

How scary is this recent crash? Objectively speaking, Bitcoin’s fundamentals have not collapsed. What truly collapsed are the dreams of high-leverage players and the market’s short-term sentiment.