#Binance Contract Real Trading# What exactly happened behind this round of plunge?
Recently, Bitcoin has plunged alongside the global stock market, causing a lot of people to panic. In fact, understanding two key clues can help decipher this operation.
First is the liquidity crisis. The U.S. Treasury has been very active recently: on one hand, it is tightening its purse strings and cutting spending, while on the other hand, it has injected $163 billion in government bonds into the market. It's like suddenly draining half the water from a swimming pool—liquidity in the crypto market and stock market has instantly tightened, and prices naturally can't withstand the pressure.
Second is the shattering of expectations. The market was originally hoping that the Federal Reserve would loosen monetary policy by the end of the year, but officials like Goolsbee have thrown cold water on that idea: "Interest rate cuts? Don't even think about it!" At the moment hopes were dashed, panic spread like a domino effect.
However, I believe we shouldn't be overly pessimistic. This feels more like a market clearance caused by short-term liquidity tightening rather than a trend-driven bear market signal. Once the U.S. Treasury returns to normal operations, or if the Federal Reserve offers any hint of easing, the speed of capital inflow may exceed expectations. The sharper the drop, the closer the rebound window becomes. $BTC
