Bitcoin’s recent drop isn’t random. The main reason is a major liquidity squeeze in the market. Around $300 billion in liquidity has been pulled out, with a large portion moving into the US Treasury General Account (TGA). When liquidity is drained like this, Bitcoin usually comes under pressure.
At the same time, macroeconomic
uncertainty is rising. A US government shutdown, political tensions over funding, and nervous global markets are pushing investors away from risky assets like crypto.
Adding to the stress, early signs of banking trouble are appearing, including the first US bank failure of 2026. This signals tighter financial conditions, which often hurt crypto prices.
There’s also regulatory and lobbying pressure building against stablecoin yields, driven by traditional banks trying to protect their dominance. This weakens confidence in the broader crypto ecosystem.
Bottom line:
Bitcoin is falling mainly due to shrinking liquidity, political uncertainty, banking stress, and increasing pressure from traditional financial institutions—not because of any single crypto-specific failure$BTC #ADPDataDisappoints #WhaleDeRiskETH #EthereumLayer2Rethink? #EthereumLayer2Rethink? #DPWatch #Binance