Recently, the market has been quite surreal.

U.S. stocks plummeted, the Federal Reserve is in chaos, and the U.S. government nearly shut down—these three major events have thrown the global financial markets into "storm mode". The cryptocurrency market has certainly not been immune, facing significant pressure in the short term. However, from a different perspective, this turmoil might actually be the time for core assets like Bitcoin to demonstrate their true value.

Let's talk about the trouble at hand.

The Nasdaq plummeted 1.9% in a single day, with tech stocks leading the decline, and the market's risk appetite instantly dropped to freezing point. Everyone is busy rushing into "safe havens" like cash and U.S. Treasuries, and high-volatility assets like cryptocurrencies naturally became the first to be sold off. After all, their performance has always been closely tied to tech stocks, and this time is no exception.

Worse still, liquidity is tightening. The market is chaotic, and financing costs are rising sharply. Those using leveraged funds are unable to withstand the pressure and begin to be liquidated, amplifying the decline directly. The liquidity of DeFi and centralized lending platforms is also shrinking, and the funding situation cannot recover in the short term.

There is another headache - the internal conflict within the Federal Reserve is now in full swing. Although the market bets that the probability of a rate cut in December has reached 70.6%, hawkish officials may jump out at any time to pour cold water on it. It is important to know that cryptocurrencies love "water" (liquidity easing), and this back-and-forth expectation will definitely harm market sentiment.

However, looking at it over a longer timeline, things aren't so pessimistic.

First of all, the credit foundation of the US dollar is being shaken.