The market crashed right at the open. Bitcoin dropped over a thousand points in just one hour, followed by Ethereum plunging downward, with the screen constantly in red.

My several trading groups are completely in chaos today. Should I clear my positions or hold on? Newcomers are getting trapped immediately after entering the market. Is a bear market coming? These questions fill the chat box, and the anxious emotions can be felt through the screen. Many people are staring at their phones, dazed at the holdings interface, even considering closing all positions with one click.

But if you've been paying attention to my analysis, you would know that half a month ago I warned — liquidity is approaching a correction. This "stock and bond double kill" is not a sudden black swan, let alone the arrival of a bear market. Follow these two logical lines below, and you'll see clearly, even find good opportunities for low buy-ins.

**Liquidity is being systematically drained; the fundamentals are actually not bad**

Imagine the market as a fish tank filled with water. Now someone is using a high-power water pump to extract water. The fish are thrashing around fiercely, but the problem isn't the fish quality itself; it's that the external environment has suddenly changed.

The U.S. Treasury's funds account (TGA) was nearly depleted some time ago, with the balance approaching a low of $50 billion. To stop the bleeding, the government not only halted previous liquidity injections into the market but also urgently sold over a hundred billion dollars worth of bonds to withdraw cash.

What does this mean? It’s like installing a super powerful bloodsucker directly into the market, forcibly sucking out over a hundred billion in liquidity.

Digital assets and tech stocks rely on incremental capital — without a continuous inflow of new money, valuations lack support. Now that the money has been diverted to fill government debt gaps, once the "funds siphoning" starts, high-risk assets immediately become targets for collective selling. Bitcoin, Ethereum, and other assets most sensitive to liquidity are naturally the first to be affected.