This plunge is by no means a coincidence, but rather a liquidity crisis that had long been signaled. Three 'suction pumps' were activated simultaneously, and market capital was drained completely.
The first wave of impact comes from the Ministry of Finance issuing bonds.
After the government resumed operations, it significantly issued 163 billion dollars in treasury bonds, which is not ordinary borrowing but a direct withdrawal of liquidity from the market. Huge amounts of capital were instantly absorbed by treasury bonds, leaving the stock market and cryptocurrency sector to passively bear the pressure.
The second wave of impact is the abrupt shift in the Federal Reserve's attitude.
A statement of 'there's no urgency to cut interest rates' has completely dashed the market's expectations for a rate cut. Leveraged funds have fled in panic, and the forced liquidations have greatly amplified the declines; this is not an emotional outburst, but a real capital panic escape.
The third wave of impact is the banking system's 'lack of water'.
The overnight interbank lending rate has shown abnormal fluctuations, with funds largely occupied by government bonds and reverse repos. The interbank market is tight on funds, so there is naturally no capacity to inject blood into risk assets—this is not a bear market, but a temporary liquidity shock.
Remember: cutting losses at this moment is no different from handing over blood-stained chips at a low point. Once the liquidity ends and funds flow back, the wrongly killed leading assets will be like cash everywhere.
The key is to endure until the moment funds flow back. Hold cash, maintain patience, and closely monitor the rhythm of bank lending, trends in government bond yields, and statements from the Federal Reserve.
When these signals appear, it is the time to enter the market. The market never rewards the 'blind movers' who follow trends; it only rewards the calm hunters who wait for opportunities.
Most people are trapped in a vicious cycle, not lacking effort, but lacking a guiding light. The market is often present, but opportunities do not wait for anyone—only by following the right people can one walk out of the darkness.
