Cryptocurrency Sudden Major Drop: Triple Inducements and Path to Market Resolution
On February 1, 2026, the cryptocurrency market once again faced severe turbulence. Bitcoin$BTC 's daily drop expanded to 3.6%, briefly falling below the critical threshold of $92,000, Ethereum$ETH dropped below $3,200, and Altcoins like Solana saw declines exceeding 8%. The total liquidation amount across the network quickly approached $800 million, with the market's total value evaporating by approximately $100 billion in a single day. This major drop is not an isolated event, but rather an inevitable result of the interplay of three factors: macro sentiment, regulatory dynamics, and changes in market structure. The industry changes reflected behind this event warrant deeper reflection from investors.
1. Source of the Major Drop: Concentrated Outbreak of Cross-Market Transmission and Structural Contradictions
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Odaily Planet Daily News: Nasdaq-listed company Tron announced on platform X that it has purchased 170,014 TRX tokens at an average price of $0.29 today, increasing its TRX treasury holdings to over 678.9 million tokens. The company plans to further increase its Tron DAT holdings to enhance long-term shareholder value.
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ASTER: The New Star of Multi-Chain DeFi's Deflationary Flywheel and Ecological Game
(ASTER: The New Star of Multi-Chain DeFi's Deflationary Flywheel and Ecological Game) In the fiercely competitive field of decentralized finance (DeFi), ASTER has become the focus of recent market attention thanks to its multi-chain trading ecosystem and unique deflationary destruction mechanism.
It is the native governance and utility token of the #AsterDEX platform, and Aster is a decentralized perpetual contract exchange (DEX) formed by the merger of Astherus and APX Finance at the end of 2024, whose core competitiveness includes both the technical architecture and a deflationary model driven by transaction fees.
When Trillion-Dollar Assets Go On-Chain: Unveiling the #1 Engine of Cryptocurrency in 2026—The Tokenization Revolution
Brothers, do you remember the love-hate Meme coin frenzy at the beginning of 2025? While everyone was still celebrating coins based on dogs or cats, the real whales had quietly turned their ships around. The 'great sharks' of Wall Street—BlackRock, Fidelity, and others—are teaming up with tech giants to move trillion-dollar real-world assets (RWA) onto the blockchain, piece by piece like LEGO bricks. BlackRock CEO Larry Fink even claims this will be 'the greatest innovation in finance since the invention of double-entry bookkeeping during the Renaissance.'
3. Set your "take profit and stop loss" in advance and strictly execute it. - Stop loss: Before opening a position, determine "the maximum loss I can accept", for example, set an automatic liquidation when the price drops by 3%-5% (adjust according to the volatility of the asset; BTC/ETH can be slightly wider, while small tokens need stricter limits). Never hold a position (fantasizing about a rebound during a downturn often leads to greater losses).
- Take profit: When the expected profit is reached (for instance, 5%-10%), partially or fully liquidate to secure profits and avoid "profit giving back" or even turning profits into losses. Discipline is the lifeline of contract trading; acting on emotions = giving away money. 4. Only trade "familiar assets" and "clear trends" - Prioritize mainstream coins with high liquidity and relatively controllable volatility, such as BTC and ETH. Small tokens (low market cap, low trading volume) are prone to manipulation, have larger slippage, and carry a higher risk of liquidation.
- When the trend is unclear (sideways movement), try to avoid trading, and only attempt during clear upward/downward trends, ensuring that your direction is consistent with the trend (don’t guess tops and bottoms against the trend; you are likely to be proven wrong by the market).
3. Advanced reminders: Cognition and mindset management
- Accept that "losses are normal": The essence of contracts is a probability game; no one can be 100% correct. Be mentally prepared for "this trade might lose" before each transaction, and do not let a single loss affect subsequent decisions.
- Avoid frequent trading: Frequent opening and closing of positions can lead to accumulated fees and disrupt rhythm due to "overtrading". It is advisable to limit daily trades to no more than 3 times. - Review and summarize: After each trade, record the reasons, profits and losses, and whether the actions aligned with the plan, continually optimizing the strategy (but don’t expect a "perfect strategy"; the market is always changing).
4. The final harsh word
Behind the "profit myth" of cryptocurrency contracts lies the accumulation of funds from countless liquidated traders. Statistics show that over 80% of contract traders end up losing money, including cases of debt due to leverage. If you want to participate, first ask yourself: "Can I accept losing all my capital?" If the answer is no, withdraw immediately.
The core of investing is to "survive", not to take a gamble. #合约挑战
Cryptocurrency contract trading (leveraged trading) carries extremely high risks, with significant price fluctuations and inherent leverage amplification effects, which may lead to quick profits but are more likely to result in substantial losses or even liquidation. Below are core recommendations based on risk control, and must be approached with caution:
1. First clarify the situations where "contracts are not suitable"
If any of the following conditions apply, it is strongly advised to stay away from contracts:
- Participating with "essential living funds" (money that cannot be lost should absolutely not be touched); - Completely unaware of the "leverage principle," "margin mechanism," or "liquidation rules"; - Emotions are easily uncontrollable (greedy when profitable, holding positions when losing); - Having a mindset of "getting rich overnight" and wanting to rely on contracts for a turnaround.
2. Core principles that must be followed (lifesaving clauses)
1. Strictly control the leverage multiple Beginners are advised to start with 1-5 times leverage (even using just 1 time to become familiar with the rules), and absolutely avoid high leverage above 20 times. The higher the leverage, the more even slight price fluctuations can trigger liquidation (for example, with 100 times leverage, a 1% price fluctuation can lead to liquidation).
Remember: Leverage is an "amplifier," which can amplify profits as well as risks, with 90% of liquidations stemming from high leverage.
2. The position of a single contract must not exceed 5% of the principal Each time a position is opened, use no more than 5% of the principal as margin, reserving enough funds to cope with fluctuations. For example: with a principal of $10,000, each time the margin for opening a position should not exceed $500; even in the event of liquidation, the loss can be controlled within 5%, avoiding total depletion.