Why did the market suddenly big dump? Is it going bearish?

Yesterday, both the US stock market and the cryptocurrency market saw a fall, with Bitcoin dipping to a low of $106,305.

The main reason for the fall is that Federal Reserve Chairman Powell said there may not be a rate cut in December, which has caused a certain level of panic in the market in the short term.
In the past 24 hours, the entire network has seen a liquidation of 1.1 billion USD, with long positions liquidated at 958 million and short positions at 140 million, mainly driven by long position liquidations.
The Fear and Greed Index has also fallen to 31, returning to the fear phase.

However, I don't think there's any panic. The relaxation of monetary policy in the U.S. is a major trend, and they are already set to stop the balance sheet reduction.
With Trump also watching closely, I believe that even if there is no interest rate cut in December, it will not affect his determination to cut interest rates in 2026.
The current situation is that there is not enough money in the market after the big dump on 10.11.
Everyone originally thought there would be rate cuts and easing, but what we got was Powell saying that a rate cut in December is unlikely. This is clearly a signal that the Federal Reserve is slowing down its tightening, and has not yet begun real easing, which has left the market in a state of watchfulness and uncertainty.
Although interest rate cuts will benefit the rise of risk assets, the market really needs to see real money coming in for it to truly improve.
So, it is now a liquidity vacuum period, and both the US stock market and the cryptocurrency market are short of money.
According to past experience, if this round of interest rate cuts begins in the fourth quarter of 2025, then a real liquidity bull market is likely to occur around the last month of 2025 to the first half of 2026.
Why is the cryptocurrency market falling harder?
Because the cryptocurrency market currently has no stories of its own to tell, besides a few newly approved spot ETFs, there are almost no other special highlights.
This is also the main reason why cryptocurrencies are being drained, as there is no profit effect, and funds have all gone to speculate in US stocks.
Traditional investors' interest in cryptocurrency is declining, as can be seen from the spot ETF data.
The spot ETF data shows that both Bitcoin and Ethereum have experienced capital outflows.

On October 29, Bitcoin spot ETFs saw an outflow of 470 million USD, while Ethereum experienced an outflow of 89 million USD, indicating that American investors are showing some panic sentiment. We can observe whether ETF funds will continue to flow out.
How are the China-US tariff talks going?
The tariffs between China and the US have finally come to a conclusion, and Trump tweeted that this meeting was very successful.

China has suspended rare earth export controls, while the United States has also suspended technology export controls on Chinese companies, with both suspension periods lasting one year.
Trump also indicated that he will come to China next April, and the Chinese side will also visit the United States.
However, this meeting was just a de-escalation of the trade war, and Trump didn't gain much from it. Market confidence has not fully recovered, and everyone is worried about whether Trump will come up with any new tricks.
How is the on-chain data?
From the data, there is a certain degree of panic in the market. Currently, it is mainly short-term investors who are selling, while most long-term investors are on the sidelines, and the selling pressure is not significant.
The Bitcoin chip structure shows that more buying pressure is gathering, with 2.432 million chips accumulated in the range of 104,500 to 111,000 US dollars.

From the perspective of capital, the on-site funds have decreased by 100 million, and the total amount is currently 311.4 billion.
USDT increased by 104 million yesterday, and Asian funds continued to maintain a net inflow.
However, USDC decreased by 231 million, and the outflow of funds from the US is quite obvious.
Overall, due to the uncertainty of the macro environment, some investors have started to seek safety, leading to selling pressure in the short-term market.
With the outflow of ETF funds and the reduction of funds in the United States, the cryptocurrency market will indeed be quite difficult to endure in the short term.
How should we respond now?
The most important thing now is to manage your position well and respond with a strategy.
If you believe the bull market is not over, then when panic occurs in the market, it is a good opportunity to buy in batches. You can use the strategy of buying big during a big dump and buying small during a small fall to average down.
But if you think the bull market is over, you need to prepare for the worst based on your own risk tolerance.
Think about how much position you would feel comfortable holding if the bull market really ends. Control your position well, keep enough funds, and be prepared for a long battle. #比特币行情分析 #加密市场观察