These days, observing the performance of the cryptocurrency market truly validates that saying— the better the data, the harder the drop.

Christmas Eve should have been a peaceful atmosphere, but it was turned upside down by a "hot" economic report from the U.S. Department of Commerce. The actual GDP growth rate for Q3 soared to 4.3%, well above the market expectation of 3.3%.

It seems like good news for a strong economy, but it delivered a heavy blow to the crypto market. Bitcoin plunged again, returning to the $84,000 level; Ethereum fared even worse, breaking below $3,000 and struggling to hold at $2,900.

Why is this happening? Essentially, it’s a game of interest rates. Good economic data gives the Federal Reserve more confidence to maintain high interest rates for the long term, pushing back the much-anticipated rate cuts. In a high-interest-rate environment, assets like Bitcoin, which do not generate yields and are highly volatile, see their holding costs skyrocket. Meanwhile, the yields on government bonds become more attractive. Where is the money flowing? From high-risk assets like cryptocurrencies to more stable traditional assets.

Numbers don’t lie. The market fear index remains at 24, and the story behind it couldn’t be clearer—investors are now both nervous and cautious. In the past 24 hours alone, the total crypto contract liquidations across the network reached $250 million, with longs accounting for $205 million. Such a level of sell-off is enough to give any long-position holder a tough time.

But there’s an interesting twist. While the market is filled with pessimism, on-chain data tells a different story about the movement of "smart money"...