Looking at the green candlesticks, it's normal to feel upset. But rushing to sell your coins might just be falling into a trap.

After watching the market for so long, my eyes are starting to strain. Bitcoin repeatedly tests the $85,000 bottom, while Ethereum directly broke through the $3,000 psychological barrier. Many newcomers are beginning to doubt themselves. Even the US stock market is plunging, and the entire market is filled with tension.

But what is the real truth? This sudden crash is not really a problem within the crypto space itself. Having been in the industry for so many years, I've seen many ups and downs. The main culprit this time is actually the liquidity crisis caused by the US government shutdown. Today, let's break down the logic behind this and see how we can respond.

**The True Signal Behind the Surface Numbers**

You need to pay attention to a few key figures. Since Bitcoin hit its peak of $126,000 in early October, it has fallen by over 30%, and at one point even dropped below $86,000. The most alarming event was on December 16th, when the total liquidation of contracts on the entire network exceeded $600 million, nearly 185,000 people were forced to liquidate.

This looks like a disaster scenario in the crypto world. But the strange part is—safe-haven asset gold is also falling. When both risk assets and safe-haven assets decline simultaneously, there is usually only one explanation: the entire market is facing a systemic liquidity contraction.

When liquidity tightens, investors are forced to sell their assets to raise cash, causing the prices of various assets to drop together. That’s why seemingly unrelated assets can weaken at the same time.