Bitcoin suddenly dived in the early morning of last night, and many people were stunned. There was a lot of backstage news, and they were all asking: What is going on with this wave?

In fact, this "plummeting without warning" is full of logic behind it. It's just that most people only stare at the K-line and jump down, but ignore that capital flow is the real lifeblood of the market.

The market will not rise out of thin air, let alone fall for no reason. Every "cramp" in the market is essentially a liquidity problem.

The fuse this time? The root is in the U.S. debt. U.S. bonds themselves are a super gold-absorbing machine, the U.S. government is about to shut down in the past few days, the Treasury Department TGA account is about to bottom, and market funds are already tight. As a result, U.S. bonds were auctioned for another 163 billion yuan - which is equivalent to drawing blood directly into the heart of the market, and a large amount of funds flowed to the bond market, and risk assets naturally fell "underblooded".

What you see is that the price of the currency is falling, but the essence is that the funds are withdrawing. Coupled with the cold wind on the Fed's side, Goolsby's hawkish remarks directly cooled down most of everyone's expectations for a rate cut in December. The funds that were originally waiting for interest rate cuts to enter the market had no direction, and Bitcoin naturally bore the brunt of what should be run and what should be cut.

But I want to remind you: this is not the end, it's just that the rhythm is changing.

Liquidity is like a tide, the more it recedes, the more it rises when it turns back. When the government resumes operation, TGA replenishment and reverse repo are relaxed, and the withdrawn funds will return to the market sooner or later.

After so many years of trading, I have seen this cycle a lot. Everyone panicked and cut meat and scolded the dealer, but in fact they all made a mistake - only focusing on the price, not looking at logic. Short-term labor pains are not a bad thing, they are cleaning floating chips. Only those who understand liquidity can lay out in advance in the chaos.

Remember: a fall is an opportunity to change hands, and panic is an emotional signal.

When others cut orders, I keep an eye on the rhythm; When others retreat, I look in the direction. This is my trading philosophy - don't bet on skyrocketing and plummeting, just follow the flow of funds.

As soon as the signal of this wave of capital return comes out, I will share the layout ideas with you as soon as possible. The road of compound interest, one person goes fast, but together go far!