How many people were stunned by that plummet in the early morning? The accounts are all green, their mindset must have collapsed.

In fact, there are always signs before each market upheaval, and this time is no exception—the core issue lies in liquidity. Many people only focus on the candlestick chart and curse, but they fail to notice that the money has already been withdrawn.

U.S. Treasuries have been very active lately. The government shutdown has left people anxious, and the Treasury General Account (TGA) is about to run dry, with the market already in a tight liquidity situation. Just at this moment, U.S. Treasuries announced a $163 billion auction plan—equivalent to directly draining liquidity from the market. The bond market is crazily attracting capital, while risk assets are naturally suffering from a lack of blood. The price plunge you see is, to put it simply, money collectively fleeing, which has little to do with technical aspects.

Worse still, the Federal Reserve added another blow. Goolsbee's hawkish remarks completely shattered the illusion of a rate cut in December. There was initially hope that a rate cut could inject liquidity into the market, but now that hope is gone. Those who needed to withdraw should withdraw, and those who need to cut losses should cut losses.

When liquidity tightens, the highly volatile assets in the crypto market are the first to be affected. It's not that the market is bad, it's that there's not enough money. Once you understand this point, you will realize why there is a sudden Plummet—markets never collapse for no reason; it's just that funds have chosen a safer haven.