Why did it drop? Because three heavy blows fell simultaneously, leaving the bulls with no counterattack.

First blow: Trump made a statement on social media, and the Middle East situation escalated overnight.
The most direct trigger for today's sharp decline was Trump posting on Truth Social that "if peace negotiations continue to stalemate, military action will be taken against Iran."
This statement appeared over the weekend, directly igniting a risk-off wave after the Asian market opened.
Tensions in the Strait of Hormuz have persisted for weeks, with previous brief clashes between U.S. warships and Iranian armed forces.
According to reports from CCTV News and other media, the Pentagon is preparing to resume military actions against Iran, with the U.S. and Israel possibly restarting military strikes as early as next week.
An Iranian parliamentary official recently revealed that Iran is ready to open the Strait of Hormuz only to "partner countries" and charge fees.
This strait accounts for about one-third of global oil shipping, posing a clear threat to international trade.
The immediate consequence of the disruption in oil and gas supply chains is a widespread increase in global inflation expectations, with international oil prices continuing to rise, and Brent crude oil surpassing $108.
Second blow: The 30-year U.S. Treasury yield broke through 5.1%, causing collective panic in financial markets.
Along with rising geopolitical risks, U.S. Treasury yields surged sharply.
Historically, when the 30-year U.S. Treasury yield exceeds 5%, it almost invariably triggers a "risk-off" trend in global financial markets, with investors selling stocks, cryptocurrencies, and other risk assets, shifting into gold, the dollar, and other traditional safe havens.
Today’s situation is exactly that: the 30-year Treasury yield rising above 5.1% directly depresses the valuation of all risk assets.
Gold fell below $4,500, South Korea’s stock market triggered a circuit breaker, and U.S. stock index futures collectively declined.
This is not an independent collapse of the crypto market but a chain reaction of global risk assets being sold off simultaneously.