The script in the crypto world is always exciting, but this time the main characters are the US Treasury Department and the Federal Reserve.

Did you see that wave of market movements in the early morning? Bitcoin was cut just like that, and the group chat instantly shifted from "lying down to earn" to "emergency rescue." The data is right in front of us: over 260,000 traders got liquidated, and the entire network evaporated $941 million in one day. Truly shocking.

But I want to share a perspective— as an experienced player who has gone through several cycles, I don't think this is a sign of a bull market cooling off; rather, it's a precise liquidity harvest. Beginners, don't rush to get off the train. Let's first clarify the logic, because now might actually be a good opportunity to get on.

**The "two hands" behind the scenes**

This sudden plunge looks abrupt, but it actually set the stage back in early October. Two financial forces in the US are acting in sync.

On one side, the Treasury is playing "bloodletting." It issued $1.63 trillion in government bonds all at once, directly draining a large amount of liquidity from the market. Think about it—less water makes a boat easier to run aground, and the same logic applies to the financial markets.

On the other side, the Fed is even more aggressive. While everyone was still expecting rate cuts and easing, Federal Reserve officials immediately said, "No plans to cut rates for now." What does long-term high capital costs mean? The risk assets that rely on cheap liquidity (like Bitcoin) instantly fall out of favor.

With this combined punch, the effect is maximized. Since the all-time high of $126,300 in early October, Bitcoin has fallen by more than one-third, almost wiping out the year's gains.

This is the real story. It’s not a technical breakdown, but a macro liquidity adjustment.