I almost didn't smash my phone last night! Mainstream coins directly waterfall through the hurdle of 65,000, and the group has become a pot of porridge - some people shouted to clear their positions and run away, and some people wondered if there was some regulatory black material.

But to be honest, after staring at the market for so many years, this decline is not a conspiracy at all, but two forces of tightening funds have met together, instantly squeezing out liquidity.

Let's talk about the first ruthless role: the U.S. Treasury Department has been selling bonds like crazy recently. Their TGA account ( the national treasury ) which bottomed out immediately, and in order to extend the life of the account, they directly threw out $163 billion in treasury bonds. What is this concept? Those institutional investors in the market had to pay real money to take over, and more than $100 billion was instantly locked in treasury bonds.

Cryptocurrencies are inherently representative of high-risk assets, and the pool is so large. Now that such a large amount of money has been suddenly withdrawn, market liquidity has been directly depleted. It's like most of the water in the fish pond has been drained away, and the fish can still jump alive?

The second blow was even more deadly: Fed official Goolsbee suddenly said harshly in the middle of the night, saying that inflation data was not yet in place and don't expect a rate cut in December. As soon as these words came out, market expectations completely collapsed. Originally, everyone was expecting interest rate cuts to bring incremental funds, but now this idea is directly shattered.

The two forces are superimposed, like another cut to the already oxygen-deficient market. Funds were sucked away by treasury bonds, expectations of interest rate cuts were disappointed, and liquidity instantly fell into a run. The decline of mainstream currencies like this is actually a direct reaction of the market to the tight capital side.

So don't be carried away by those conspiracy theories, this wave is pure liquidity crisis. In the short term, the market may continue to bottom out before the Fed's policy pivot.