Attention brothers! The atmosphere in the crypto market is obviously wrong this week, and there is a big move coming next week - the United States is going to hold a $125 billion treasury bond auction, and it also carries 40 billion corporate bonds. It just hit the shrinkage of the holiday trading session, and this combination is afraid that the market liquidity will be squeezed dry.



As a veteran who has been in the currency circle for almost eight years, today I will dismantle how deadly this matter is.

Explain to friends who haven't figured it out yet: the entire financial world is like a giant reservoir, and stocks, bonds, and digital currencies are all divided from this pool. Now that the pool has bottomed out, this wave of operations in the United States is equivalent to directly opening the floodgates to release floods - withdrawing a large sum of money to buy treasury bonds. As soon as the water level drops, all markets that rely on these funds will be thirsty, and volatility will soar instantly.

Some people may think: "This is a bad thing about traditional finance, what does it have to do with our digital currency?" "Wake up, friend! Now is no longer the era of savage growth in 2017. Large institutions have long regarded all kinds of assets as capital pools, and they will spend money wherever the income is determined. When bond yields become attractive, they do not hesitate to withdraw from the crypto market. Mainstream currency like ETH will bear the brunt of the impact.

What's even worse is the timing - the trading volume will shrink during the holidays, and if there is a liquidity draw at this time, the market depth will be terribly thin. A few large orders can smash the price out of the pit or pull out a false breakout.

How to deal with it? Three words:
ETH2.16%
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StillBuyingTheDipvip
· 12-10 23:10
1. With this wave of 125 billion government bonds, institutions are really about to withdraw, and ETH might be hit again. 2. Liquidity was already poor during the holiday, now it's even worse. Let's wait and see who gets cut. 3. Here we go again? Every big event says "it's going to crash," but what actually happens is that the buyers are making profits. 4. I just want to know, is this a real drop this time or just another trick to lure retail investors into bottom fishing? 5. As government bond yields rise, funds will inevitably flow into the bond market. There's no problem with this logic, but the crypto world isn't the same as traditional finance. 6. Just waiting until next week, I feel it will be a good bottom-fishing opportunity. Anyway, I will keep dollar-cost averaging. 7. Bloodletting in liquidity... sounds serious, but history has proven that it can't scare true believers. 8. The reduced trading volume during the holiday was expected. What's new? 9. Deep pit, waiting for it. When the time comes, buy at low prices and it's all good. 10. Didn't see the three words, this guy missed them. But I guess it's probably "跑路" (run away).
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TokenomicsPolicevip
· 12-10 06:08
Uh, no... The holiday shrinkage is uncomfortable enough, and this wave of blood draws? I'm afraid I'm going to see blood next week
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CantAffordPancakevip
· 12-10 06:08
Damn, this wave of 125 billion is really ruthless, and the holidays are still here to cut leeks
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FloorSweepervip
· 12-10 06:05
ngl, this liquidity squeeze gonna separate the wheat from the chaff real quick. weak hands papering out while smart money accumulates... classic capitulation setup if you know what to look for.
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DegenGamblervip
· 12-10 05:54
Damn, this is really coming, I have already felt it Go to fucking holiday trading, this is the most ruthless smashing time Wait and see which institutions will run away
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