Yesterday's sharp decline probably woke up many people in the middle of the night, with their account heartbeat soaring to 150. Fear of continuing to drop if they buy the dip, but reluctance to cut losses—this kind of moment has the comment section boiling over with "want to run away" voices. Everyone who has experienced it understands that feeling.

But let's calm down for a minute. Today I want to discuss: after this flash crash, does the crypto market still have a chance to rebound? Is it the prelude to a new wave of growth, or will high volatility continue to play out? The core trends I've been watching recently point to an answer that might change your judgment.

My conclusion is: in the short term, there is indeed room for a rebound, but don't expect a "V-shaped reversal." This round of decline is not the start of new growth, but part of the crypto market's ongoing "deleveraging and bottoming." Volatility will continue, but there's no need to be completely bearish.

The key is to understand the nature of this decline. I looked at recent capital flow data and found an important fact: this drop mainly came from "capital踩踏" (capital踩踏), rather than a fundamental collapse. Retail investors who chased high prices earlier and some quantitative funds with leverage were forced to liquidate, triggering a chain reaction. One way to put it—it's insiders scaring insiders.

What's going on? Many leveraged accounts' liquidation levels are concentrated in certain price ranges. Once the price falls below these levels, automatic sell orders are triggered, leading to more selling and a vicious cycle. But interestingly, the truly long-term funds—like some large institutional holdings—have been quite stable recently, with no obvious large-scale reductions. This leaves room for a short-term rebound.