Recently, the market has been a bit heartbreaking, and many people's accounts have turned red. But this isn't just bad luck; frankly, large sums of capital are being continuously drained.

A few days ago, the moment I opened the market app, the Nasdaq crashed, Bitcoin followed suit, and my holdings turned all green. Many friends have probably experienced this feeling recently.

At first glance, it seemed like a black swan event, but upon closer inspection—no, this is fundamentally systemic. Market liquidity is being simultaneously siphoned off by three major players.

Let's take a look at what these three "vampires" are doing.

**First, the Treasury Department's bond frenzy**

Recently, the pace of government bond issuance has been extremely rapid. In the first quarter of 2026, a plan for ultra-long-term bonds was announced, with the launch of the 30-year bond on January 14th, and more will follow. The scale is also significant—$163 billion.

What does this mean? Large funds will flock to buy these almost risk-free assets. Who in institutional investing doesn't want stable returns? As a result, money that might have gone into stocks or the crypto space is being "snatched" early. In the short term, this dense issuance does indeed squeeze market liquidity.

**Second, the Fed's policy reversal**

At the end of last year, market expectations for interest rate cuts were extremely high, but the Federal Reserve sent a completely different signal. This contrast is like magic—market optimism was suddenly shattered.

**Plus, the turbulence in geopolitical situations**

Changes in the international political landscape are also putting pressure on financial markets. Risk aversion is rising, and funds naturally flow into safe havens.

These three forces are working together, resulting in both the crypto and stock markets being forced to shed liquidity. The recent volatility is less an accident and more an inevitability.

What should we do in response? First, recognize that this adjustment is often not a bad thing. The market clearing out some bubbles actually creates conditions for future growth. Second, focus on the long term rather than daily ups and downs. Projects with solid fundamentals, short-term price fluctuations are just opportunities.