The crypto market faces a "liquidity winter": 600 billion evaporated in 48 hours, Bitcoin falls below 100,000 USD.

The cryptocurrency market is currently experiencing a severe liquidity contraction storm. In just 48 hours, Bitcoin's market value evaporated by $200 billion, with its price directly falling below the crucial threshold of $100,000. The total market value of the entire cryptocurrency market shrank from $3.8 trillion to $3.2 trillion, and the fear and greed index plummeted from 42 to 21, officially entering the "extreme fear" zone.

The core driving force behind this wave of sharp decline is the dual blow from the macro market. On one hand, the $163 billion auction of 3-month and 6-month U.S. Treasury bonds triggered a "siphon effect" of funds, with a large amount of money shifting from risk assets to low-risk Treasury bonds, putting significant pressure on the already sensitive cryptocurrency market. Meanwhile, the scale of overnight reverse repurchase agreements plummeted from $51.8 billion to $23.7 billion, further tightening market liquidity, which undoubtedly exacerbated the selling pressure.

The Federal Reserve's hawkish signals have become key to undermining market confidence. Although the Fed has previously implemented interest rate cuts, Chairman Powell made it clear that a rate cut in December is "not a done deal," emphasizing the need to "proceed with caution" and not rush into cuts; Fed Governor Goolsbee also made hawkish remarks, completely reversing market expectations for easing policies. Coupled with the fact that the U.S. federal government has been shut down for 35 days (later updated to 36 days, setting a record for the longest shutdown), the lack of economic data has caused the market to lose its anchor for assessing the outlook, significantly increasing uncertainty.

The trend of capital outflow has become very obvious. According to a report by CoinShares, the weekly outflow of funds from cryptocurrency investment products reached $360 million, with the US market contributing an outflow of $439 million, barely offset by a small inflow from Germany and Switzerland. As a market barometer, Bitcoin ETF has become a heavy area for sell-offs, with redemption amounts reaching $946 million, setting a record for outflows during this period.