Last night’s plunge left many people bewildered when they woke up to check the market. Bitcoin plummeted directly, and there was a chorus of wails in the group; private messages were flooded.
In fact, this kind of “sudden” crash always has its reasons behind it. Most people fixate on the candlestick charts, overlooking the flow of funds.
I often say that markets don’t rise or fall for no reason. Every sudden movement has liquidity issues behind it.
The trigger for this crash, to put it simply, is the U.S. Treasury. With a government shutdown imminent, the Treasury's accounts are nearly depleted, and market funds were already tight. As a result, over a hundred billion in auctions were pushed from the Treasury, effectively activating a money-sucking machine—money flowed directly to the bond market, leaving Bitcoin, as a risk asset, “anemic.” That large bearish candle last night wasn’t a surprise; it was inevitable.
Furthermore, the Fed has released some hawkish statements, which cooled market expectations for interest rate cuts in the first half of the year. The originally expected loose funds lost direction and could only flee for safety, with Bitcoin taking the brunt of it.
But I want to say, this is not the end of the world; it’s just the market changing its rhythm. Liquidity, when it retreats rapidly, returns even more forcefully. Once the government resumes operations, the funds will inevitably come back.
Having traded for so many years, I’ve seen this cycle too many times. Those who panic and cut losses usually do so at the bottom. When the market drops, it’s often an opportunity changing hands; only emotions are panicking. Understanding where the money flows is key to standing firm amid chaos. $BTC $ETH
I only engage in real trading, not in the virtual. Those who want to avoid pitfalls should not blindly explore. Keep up with the rhythm, @Liu Jie talks about the crypto circle, and let’s take it slow with solid logic together. 🔥