According to online reports, Xinhuo Technology CEO Weng Xiaoqi told the media today that after the sharp drop in the early morning of October 11, mainstream currencies such as BTC and ETH rebounded rapidly, and some currencies even hit new highs. Bull markets often fall sharply, and often rebound quickly after a sharp decline. This is a standard bull market feature. On the contrary, a bear market is characterized by continued negative decline. Against the background of continued interest rate cuts and the release of liquidity, the fundamentals of the industry have not reversed. At the same time, Weng Xiaoqi believes that the real scale of this sharp drop far exceeds US$20 billion. Many institutions and large households have sold out, and the industry has fallen into a liquidity crisis in the short term. In the short term, it cannot be ruled out that there will still be considerable volatility, and historically, a double dip confirmation after a sharp drop has not been ruled out. Non-professionals are not encouraged to use leverage and always respect the market. On the other hand, Weng Xiaoqi believes that there is no need to be overly pessimistic. Liquidation also brings opportunities to the industry, which means that the power of repeated games on the market is weakened. After the market consolidation forms the direction, the intensity may be even greater. At present, the prices of many crypto assets are already lower than the cost price of DAT companies that previously established positions. Taking ETH as an example, the average position of BMNR exceeds US$4500, while the current ETH price is about US$4100, which is good for DAT companies that have not yet established positions. This sharp drop stems from an overreaction to Trump's TACO diplomacy. There is still the possibility of high volatility in the short term, and market risks need to be paid attention to. However, after continuous political repetition, the market will become desensitized after being stressed, and the industry will enter a more stable development.