Market Overview - Crypto traders are experiencing heightened volatility following a significant market downturn, with options data indicating a defensive stance among traders [1] - Over $19 billion in leveraged positions were liquidated during a flash crash, with Bitcoin dropping 12%, Ethereum 20%, and Solana nearly 25% [2] - The selloff is characterized as one of the largest deleveraging events, driven by excessive leverage and crowded long positions [3] Impact of External Factors - The market turmoil was exacerbated by US President Trump's renewed tariff threats against China, which reignited global risk aversion [4] - The S&P 500 experienced a 2.7% decline, marking its worst single-day drop since April, while the Dow Jones fell by 878 points and the Nasdaq dropped 3.6% [5] - Analysts suggest that Trump's trade strategy will continue to be a significant source of market volatility [6]