**This plummet came a bit strong**

On the night of December 1st at 11 PM, ETH suddenly plummeted. The price level of $2831 held for only a few minutes before it directly dropped to $2718, losing nearly 4 points just like that.

To be honest, there are several obvious signals in this round of plummet:

First is the rhythm. Previously, ETH had been stagnant for several days, with the price grinding along. This time it accelerated downward directly, obviously after a key support level was broken, leading to a chain reaction of liquidations combined with panic selling.

Secondly, it’s not just ETH that is falling. BTC and other major coins are all dropping, the entire market is in the red, which indicates that it’s not an issue with a single coin.

The last point is crucial - the order book has thinned. A few large orders can easily plummet the price, and the liquidity is clearly not as good as before.

**What happened on the macro front?**

In fact, this adjustment is not unfounded; the external environment has already changed:

The Bank of Japan has recently started discussing interest rate hikes. It is important to note that Japan has had a zero or even negative interest rate for many years, and this sudden hint at raising rates has immediately changed global expectations for the cost of capital. If Japan truly begins to raise interest rates, it will directly raise the baseline for risk-free interest rates.

Looking at the Federal Reserve again. Previously, the market was betting on interest rate cuts, but recent data and officials' statements have been relatively cautious, and the expectations for rate cuts are being continuously weakened. As the imagination of liquidity shrinks, risk assets naturally become less appealing.

In simple terms, the global attitude towards high volatility assets has changed. Previously, people were willing to leverage and take risks, but now they are more focused on actively reducing leverage and controlling risks. As a high Beta asset, cryptocurrencies are naturally at the forefront.