The fall in the early hours of tonight seems inexplicable, but the reason is very clear.

The core issue is that liquidity has been drained again, and most people have overlooked this point.
📉 Layer 1: Fund withdrawals triggered by U.S. Treasury auctions
The U.S. government shutdown and the TGA not providing liquidity have led to a lack of liquidity in the market itself.
This time, the nominal auction scale of 3-month and 6-month U.S. Treasury bonds is 163 billion, but the announcement shows it actually reached 170.69 billion.
After deducting the Federal Reserve's SOMA reinvestment, the actual funds withdrawn from the market are still 163 billion.
This means that an equivalent amount of funds has been withdrawn from the financial market in a short period.
During the phase of liquidity easing, auctions of this scale are inconsequential;
But during the tightening cycle, every "blood draw" will be magnified by risk assets.
The recent fall of Bitcoin is a direct reflection of capital outflow.
🦅 Second Layer: Federal Reserve Hawkish Signals
Goolsbee's speech maintained a hawkish stance, causing market confidence in a rate cut in December to decline.
The probability of interest rate cuts has fallen from nearly 70%, and market sentiment is suppressed.
The expectation of interest rate cuts is the emotional support for risk assets; once shaken, short-term pressure will naturally emerge.
💡 Conclusion: Liquidity combined with expectations has led to widespread pressure on risk assets.
Bitcoin, as a liquidity-sensitive asset, is particularly evident.
But this is not the end, but a stage of fluctuations.
✅ When the government resumes operation and TGA replenishes funding,
✅ If the Federal Reserve slows down the pace of reverse repos,
Market liquidity will gradually improve.
In such a macro environment, short-term speculation may cause anxiety, but long-term construction is the answer.
Puppies community is exactly such an example - after nearly two years of continuous development,
Do not rely on emotional hype, but rather accumulate consensus during a bear market and strengthen value amidst volatility.
Liquidity has cycles, but belief will not be shaken.
Investing in short-term is chasing the wind, while building a community is taking root.
$BTC $ETH $SOL $PUPPIES