My heart skipped a beat when I was watching the market early this morning. ETH took the lead in plunging, and the other major coins couldn’t hold up either. Key support levels broke as soon as they were tested. That sea of green in my account looked even more eye-piercing than the chives at the market.

Notification boxes kept popping up nonstop, all filled with anxious questions: “Did something major just happen again?” “Is it too late to cut losses now?” Honestly, this drop is brutal, but it’s not really a sudden ambush. The problems have been brewing for a while; it’s just that several forces acted at the same time recently, sending liquidity in the market into chaos.

I’ve been in this space for nearly ten years, and I’ve weathered plenty of storms. Today, I want to break down what’s really behind this drop. Anxiety won’t help; understanding what’s going on can actually help you spot opportunities.

**Treasuries Are Sucking Up All the Money**

The biggest move in global capital markets lately is the surge in treasury issuances. In just one week, over a hundred billion dollars’ worth of treasuries have flooded the market. This isn’t business as usual—it’s like suddenly adding a “principal-protected and profitable” option to the market, with yields still climbing.

Money is practical. The hot money that used to slosh around the crypto market sees this kind of safe opportunity and is bound to want a piece of the action. After all, on one side you have coins that could double or get cut in half, and on the other, you have bonds earning steady interest. It’s not hard to see where short-term capital will go.

Crypto’s liquidity pool wasn’t that deep to begin with, so when money gets pulled out like this, and the sell side hits, there’s just nobody to catch the fall. That’s how a lot of people’s positions get wiped out for no apparent reason. Declines without volume are the most brutal.

**The Fed Is Shifting Its Tone Again**

Earlier, everyone thought a rate-cutting cycle was on the way, and market sentiment was pretty pumped. But lately, the Fed’s attitude has clearly changed, sending all kinds of signals hinting “don’t get your hopes up.” As soon as those expectations changed, capital immediately...