The Bitcoin liquidity crisis of $TREE may exacerbate market volatility, with short-term panic potentially triggering sell-offs, but a recovery opportunity may arise in the medium term. The main impacts are as follows:

1. **Price volatility amplifies**: An imbalance in buy and sell orders can easily lead to flash crashes or rapid surges, and the risk of leveraged positions rises sharply.

2. **Institutional entry opportunity**: Low-priced BTC attracts long-term capital allocations, and compliant exchanges may become entry points for funds.

3. **Regulatory attention intensifies**: Liquidity risks may accelerate the implementation of global stablecoin frameworks and custody rules.

> *On-chain data shows that the BTC balance on exchanges has fallen to its lowest point in 5 years, and the OTC price spread has widened to over 3%, with market depth weakening. However, the proportion of long-term holders has surpassed 76%, and historically similar phases often coincide with bottoming markets.*

**Strategy tips**: Be wary of liquidity crunches in the short term, focus on the support line of miners' holding cost (around $28K) in the medium term, and liquidity recovery may take 1-2 quarters. Close monitoring of the USDT premium index and changes in CME futures positions is necessary.