Just opened my eyes and checked the market, and I felt a chill in my heart. The plunge at 3 a.m. wiped out the week's gains, rubbing them into the ground. The barrage of comments was full of curses, with many saying that the market is controlled by big players. But I've been in this industry for nearly ten years, and I have to honestly say—this time's culprit is more ruthless than any big player.

The real culprit behind the move is the U.S. Treasury bond auction, this "bloodletting pump."

To understand this decline, you must grasp a word: liquidity. It sounds fancy, but it simply refers to the flowing funds in the market. When there's plenty of money, the market has confidence; once the active funds are pulled away, not only the crypto world but even traditional finance has to shiver. The source of this massive fund withdrawal is from the U.S. Treasury.

Now, the Federal Reserve and the Treasury Department are having a tough time. The U.S. government's cash reserve (TGA account) has long been depleted, and the already tight market is even tighter. Although the Fed is desperately injecting money into the banking system, the speed at which the bond market, this "money pit," absorbs funds is so fast that it’s practically leaving the printing press behind.

The key turning point is here: in the recent three-month and six-month Treasury bond auctions, the planned scale was $163 billion, but the actual transactions exceeded $170.69 billion. On the surface, everything seems calm, but in reality, it's equivalent to directly drawing $163 billion out of the blood vessels of the financial market. Think of it from another angle—it's like inserting a thick straw into a nearly dried-up water pool and sucking out all the liquidity.

Usually, this money might not cause much wave, but in the current tense situation, every bit of outflow of liquidity can directly transmit to the crypto market. The final result is what you see—sudden drops, causing many accounts to plunge overnight.