Recently, this wave of big dumps has caused many to panic. Bitcoin has broken $100,000, and alts are crying out in despair. But upon reflection, what's really behind this decline?

**Liquidity depletion is the real culprit**

The U.S. government shutdown has now lasted 36 days, setting the longest record in history. It sounds like a political farce, but for the market, this is a tangible shock—institutional funds are frantically withdrawing from risk assets. Even more critically, the Treasury General Account (TGA) balance has skyrocketed from $300 billion to over $1 trillion, the highest in five years. What does this mean? It’s equivalent to $700 billion of liquidity being drained from the market. Bank reserves are shrinking, money market interest rates are rising, and the dollar has suddenly become tight.

Traditional financial markets haven't been able to withstand this either. The Korean stock market plunged 4% in a single day, and U.S. stocks were also in the red before the market opened. Market panic has spread like dominoes to the crypto space, and Bitcoin naturally couldn't hold the line.

Adding to this, signals of tightening regulation domestically have become increasingly obvious—news of WeChat accounts being banned and groups being cleared out is everywhere. Some funds are starting to panic and flee. With multiple factors stacking up, market sentiment has completely collapsed.

**Where is the bottom?**

Based on technical and sentiment analysis, the range between $95,000 and $100,000 is most likely the short-term bottom. Of course, until the government shutdown is fully resolved, the market will continue to fluctuate. But from another perspective, after the panic subsides, funds will inevitably look for an exit, and at that point, Bitcoin is very likely to experience a rebound.

Crises hide opportunities—this old saying is actually true. Now, dollar-cost averaging into Bitcoin and waiting for market sentiment to recover could yield quite substantial returns. Don’t let short-term fluctuations scare away your patience.