2025-12-09 22:19:14

The recent movements in the crypto market have been a bit strange. The supply side keeps tightening, and there hasn’t been any large-scale sell-off on the demand side. Logically, prices should be holding up or even moving higher. But what happened? Bitcoin has been dropping dramatically, the $100,000 psychological barrier is on shaky ground, and many people are starting to wonder if a whale is dumping.

After tracking the market for three years, I feel this time is different from before. This round of decline isn’t due to panic selling—the real issue lies with the US Treasury: they’ve tightened the liquidity valve.

You might wonder: what does the Treasury have to do with our crypto space? That brings us to the current gridlock in Washington. The government shutdown has left the Treasury sitting on over $150 billion, and because of procedural holdups, this money can’t enter the market at all. Don’t underestimate that number—the market is like a circulatory system, and funds are its lifeblood. With such a huge sum locked up, it’s like draining blood directly from the market.

How sensitive are crypto assets to liquidity flows? Extremely sensitive. Institutional funds that were on the sidelines, considering whether to enter, suddenly saw less money in the market. As liquidity slowed, institutions immediately hesitated and even started to reduce their positions to hedge risks. This creates a vicious cycle: buying power weakens, prices naturally can’t hold up, and can only keep sliding.

Here’s a data point I can share: over the past six months, whenever liquidity from the Treasury fluctuated—

BTC1,82%

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GateUser-e51e87c7

· 2025-12-12 20:45

Wait a minute, is the blame for the US government shutdown also being pinned on the crypto world? I need to think about this logic... Washington folks are really something, holding onto $150 billion like this, no wonder institutions are withdrawing. Losing $100,000 really does hurt, but honestly, it's still a liquidity issue. The sell-off is what it is, but fundamentally, the Treasury Department took a cut of blood. Commodities are also fluctuating with the market, and the sensitivity of crypto is indeed no joke. If this wave is truly caused by the government shutdown, then once liquidity returns, there might be a rebound opportunity. Institutions are starting to unwind their positions, retail investors are panicking, scaring themselves silly. It feels like this downturn is a bit different, not just pure panic.

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UnluckyLemur

· 2025-12-11 00:02

Wow, can the Ministry of Finance's issues really directly cause a sell-off? I need to think about this logic more carefully. 150 billion just got frozen like that, no wonder institutions are all pulling back. To put it simply, the money has decreased, who would still dare to take the risk?

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ZenMiner

· 2025-12-10 09:57

Once again, it's the same logic from the Ministry of Finance, and it's making my ears numb... But on the other hand, this time it really feels different; having your blood drained is genuinely uncomfortable.

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SoliditySlayer

· 2025-12-09 22:47

Wait, can a government shutdown in the US really have such a direct impact on crypto prices? Feels like they find a new reason every day. Seriously? Just $150 billion getting stuck can cause a crash like this? Why are there so many tricks? How come the stuff those people in Washington do ends up hurting my wallet? Institutions really went hard this time—when they say they're pulling out, they actually pull out. Supply is tight and demand isn't dropping, so why does it have to fall? This logic just doesn't hold up. Great, now big players have another chance to buy the dip. The liquidity valve metaphor is decent, but it just sounds like the prelude to another round of retail holders getting fleeced.

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MintMaster

· 2025-12-09 22:44

This logic makes perfect sense; liquidity being locked up is indeed a hidden problem. So, does that mean those people in Washington have no idea how the crypto market operates? $150 billion frozen... no wonder institutions are all pulling out. The government shutdown affecting crypto prices isn’t even funny anymore. Wait, so according to this logic, there’s going to be more dumping ahead?

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DegenWhisperer

· 2025-12-09 22:43

Damn, $150 billion just got frozen like that? No wonder institutions are starting to get scared—this move is seriously ruthless.

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MrRightClick

· 2025-12-09 22:42

The Ministry of Finance’s move is truly ruthless, directly draining the market’s lifeblood. $150 billion locked up—no wonder institutions are all pulling out.

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potentially_notable

· 2025-12-09 22:42

Wait a minute, the Treasury locking up 150 billion is enough to crash BTC? That logic is way too far-fetched... But seriously, can America's political mess really affect crypto prices? Feels pretty powerless. Institutions really do have some ruthless tactics—at the slightest sign of trouble, they bail immediately, and retail investors like us just get screwed. This dip does feel a bit different; those previous panic sells were actually easier to predict. If supply is tight but prices are still falling, that really means there's a problem on the demand side. If the $100,000 mark breaks, there could be more downside ahead. This angle of liquidity being frozen is something I've never heard before—need to keep an eye on it. The problem is that institutions always know the inside scoop before we do. Whatever the reason, a drop is a drop—just wait for the rebound.

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BlockchainBard

· 2025-12-09 22:27

No way... This guy's analysis actually makes some sense, I really hadn't thought about the $150 billion being locked up like this. The government shutdown is causing trouble for the crypto space too, this plot twist is honestly wild. Wait, so you're saying BTC's current drop isn't because institutions are dumping, but rather it's a macro liquidity issue? So should we be buying the dip or staying on the sidelines? This logic feels right, but I need to see the data that follows—just listening to this seems a bit risky.

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