Wednesday morning, just as I was about to take my first sip of coffee, my phone suddenly started vibrating nonstop. I looked at it and saw messages in all the groups saying "It's over, it's over," almost spraying coffee everywhere. I switched to the market app and nearly choked—mainstream cryptocurrencies plummeted by 6% in half an hour, and even US stock futures were dragged down and dumped, plunging by 1.6%.

A brother in the group who just entered the圈三天 was panicking and asked if I thought he should cut his losses quickly, afraid of losing everything if prices kept falling. I glanced at the charts and directly sent over three screenshots of data I had taken earlier: "Bro, don't panic. This sharp decline was foreseen; it's not a black swan. Clearly, it's a vulture already eyeing the prey."

Having been in this圈 for five years, I've seen scenes like this many times. Today, I’ll break down three core logics that even beginners can understand, along with two practical strategies to ensure you won't panic next time there's a crash.

**1. The market hasn't collapsed; liquidity has been drained**

Many people see the drop and shout "whales are dumping," "bad news is coming," but this time, that's not really the case. The real trigger was the U.S. Treasury suddenly "sucking blood."

Recently, the U.S. government had a shutdown that caused quite a stir, and the Treasury was already empty. Last week, the Treasury issued an emergency short-term debt of $163 billion—simply put, borrowing money from the market to bridge the gap. This is no small amount; major institutions had to pull funds from stocks and high-risk assets like cryptocurrencies to buy these bonds. It’s like draining over a hundred billion liquidity from the market overnight.

Think about it—markets are like a water pool. Suddenly scooping out a large portion of water causes the level to drop. Crypto markets rely heavily on capital to drive prices; without money support, a 6% decline is already generous.

**2. The sudden "pause" in rate cut expectations, leveraged funds retreat overnight**

If the Treasury's liquidity withdrawal was the first blow, then the sudden shift in rate cut expectations is the next.