Why did the market crash?

This time, several forces are pulling behind the decline. I've sorted it out, mainly these points:

First, this week there are $125 billion in U.S. Treasury bonds to be auctioned, which has absorbed a lot of liquidity from the market, naturally tightening liquidity.

Second, although the Federal Reserve has stated it will stop balance sheet reduction, the actual actions have not kept up with the rhetoric.

Additionally, the U.S. government has just ended its shutdown, and it will take time for the entire system to resume operations; the Treasury's TGA account has not yet started spending heavily, and it is estimated that it will take some time before this momentum reaches the cryptocurrency market.

Moreover, there has been a lack of key macro data recently, making the hawkish voices within the Federal Reserve particularly loud. Market expectations for a rate cut in December have fallen from a 90% certainty a month ago to a 50-50 chance now. U.S. stocks are also correcting as they have risen too much previously, and the cryptocurrency market has a tendency to "follow declines, not increases," which has once again dragged it down. Finally, pessimistic sentiment is contagious; the more prices drop, the more panic spreads, and the more panic there is, the more selling occurs, creating a vicious cycle. Without strong capital coming in to break this vicious circle, it will be difficult for the market to turn around on its own.