In addition to the possible Chinese reasons, I also saw a data that may have been a trigger for the decline in the risk market. Of course, I am not sure, I am just sharing what I have seen. Moreover, logically speaking, I believe that the Japanese yen is a more likely trigger point, as it is not China's cryptocurrency policy that is driving down the US stock market. The yield of Japan's two-year treasury bond exceeded 1%, the first time in 17 years since 2008. The last time Japan's 2Y to 1% was before the financial crisis. This means that Japan has actually entered the era of interest rate hikes, and the framework of zero interest rates and YCC is being re priced. The change in Japan's interest rate structure is not only a problem for Japan, but also the starting point of global capital flow changes. The Japanese yen is the world's largest financing currency, and the rebound in Japanese interest rates is driving the marginal contraction of the carry trade. In the past decade or so, a considerable portion of global liquidity has come from the popularity of low interest yen loans, which have been invested in high-yield assets such as US bonds, stocks, credit bonds, and even BTC. The combination of low financing costs and stable exchange rates has made the arbitrage space very stable. But now, when the short-term yield in Japan returns to 1%, the spread is rapidly compressed, and cross currency arbitrage is no longer cost free, and there is even a possibility of becoming a loss making trade (although it is still cheap, the direction has changed). Institutions have had to reduce their holdings of risky assets to lower leverage, resulting in a global "deleveraging" reflex effect. The return of yen funds means a decrease in marginal demand for US bonds, US stocks, and cryptocurrency assets, while the attractiveness of domestic assets in Japan is increasing. The narrowing of the interest rate spread between the US dollar and the Japanese yen has also put greater pressure on the US dollar. Once the exchange rate begins to experience a directional correction, systemic funds will mitigate risks in advance. The short-term yield in Japan breaking 1% is not an ordinary interest rate event, but a node that may trigger a global repricing of arbitrage structures, thereby affecting US bond rates, US dollar strength, risk asset volatility, and ultimately feedback to the risk appetite of the entire market. The tweet I quoted is about why Japan YCC has an impact on the risk market. Interested friends can take a look. Especially in high leverage carry trades, strategic funds are highly sensitive to changes in yen interest rates, and the market often experiences short-term selling pressure in the marginal changes of these liquidity structures. Talking to people is essentially Japan's interest rate hike, which increases the cost for investors who used to borrow in yen, as they are afraid that further cost increases may offset profits and leave early. Of course, this is just speculation! Bitget VIP， Lower rates and more generous benefits