The core reason for the simultaneous decline of the stock market and the cryptocurrency market on November 20, 2025 Today (November 20th), global risk assets collectively plummeted, with the US S&P 500 index plummeting nearly 2.5% and evaporating about $1.5 trillion in market value within 80 minutes. Nasdaq led the decline (AI technology stocks fell sharply), while A-shares and Hong Kong stocks simultaneously declined; The cryptocurrency industry is even more miserable, with Bitcoin falling below 87k at one point, evaporating over $100 billion in the entire market, and the panic index falling to 15 in the "extreme fear" range (close to the lowest level this year). **This is not an isolated event, but a chain reaction after multiple negative resonances, mainly due to the following reasons:** 1. * * The expectation of the Federal Reserve's December interest rate cut has significantly cooled down (the most direct trigger today)** Several Federal Reserve officials (including Powell's suggestion) have collectively hawkishly stated that the probability of a rate cut in December has decreased from over 70% a week ago to 50/50 or even lower, influenced by strong economic data after the government's restart. Senior officials even issued a 'tightening warning' directly. The expectation of high interest rates directly suppresses the valuation of all risk assets, especially high valuation AI technology stocks and cryptocurrencies. The AI sector in the US stock market collapsed first, and Bitcoin, as a "risk barometer," followed suit with an amplified decline. 2. The ongoing escalation of Trump's tariff trade war** Since Trump's resumption of the trade war with China on October 10th, the market has entered a state of unease. The simultaneous sharp decline in the US stock market and cryptocurrency market today is a continuation of the previous tariff panic and a new wave of forced selling. Cross asset correlation is extremely high: when the stock market falls, leveraged players are forced to close their encrypted positions, forming a vicious cycle. 3. * * AI technology stock valuation foam burst+liquidity depletion** On the eve of Nvidia's financial report, the market completely lost confidence in the sky high valuation of the AI sector, and Nasdaq took the lead in killing valuations. The Bitcoin ETF has experienced consecutive days of net outflows (with BlackRock IBIT experiencing a single day outflow of over $500 million and a total outflow of nearly $2 billion in November), and long-term holders have concentrated on cashing out (selling 815000 BTC in the past 30 days, setting a new record for the year). The market depth has become thinner, with a sharp drop at any sign of turbulence. 4. * * Mandatory liquidation and cross market contagion** High leverage players sell out → Sell off US tech stocks to replenish margin → Tech stocks fall again → More crypto leverage sells out → Bitcoin accelerates decline → Retail investors panic and sell, forming a perfect negative feedback. Today's flash crash of the S&P 500 directly brought the cryptocurrency market crashing. **In summary:** This is a typical "late cycle liquidity crisis": the Federal Reserve does not cut interest rates+tariff uncertainty+the AI foam peaked, and the triple negative superposition led to the instantaneous collapse of risk appetite. It is normal for Bitcoin, as the most aggressive risk asset, to fall even harder than the stock market. In the short term, it is still extremely dangerous. 87-88k is the key support, and if lost, it may explore 80k or even lower; If the US stock market continues to kill valuations, it is not impossible for the S&P 500 to fall below 6000 points. Now is not the time to bargain, it is the time to survive. Cash is king, leverage is dead. Wait until the Federal Reserve truly turns or Trump's policies are implemented before discussing a rebound.