The reason for the decline has been found!

The U.S. government shutdown has directly drained trillions of dollars in market liquidity,

including in the crypto market, gold, and stocks!

The tight liquidity has triggered a series of chain reactions, causing various assets to decline across the board. Investors are forced to sell assets to maintain liquidity. When interbank market funds are tight, investors need cash to respond to margin calls and can only sell their most liquid assets, whether it's gold, Bitcoin, or stocks.

U.S. dollar liquidity is the lifeblood of the market; once drained, gold, crypto, stocks, and bonds all suffer from "oxygen deprivation" and decline. Risk aversion drives a stronger dollar. The dollar index has risen for the fifth consecutive trading day, surpassing 99.80, reaching a three-month high. A strong dollar further suppresses risk assets priced in dollars. The cryptocurrency market has seen massive liquidations. Bitcoin has fallen below the $100,000 mark for the first time since June, with 342,000 liquidations occurring across the network in the past 24 hours, amounting to over $1.3 billion, of which long positions accounted for 85% of the losses.

The key to resolving the current liquidity crisis is relatively clear: the government needs to reopen. Once the government reopens, the Treasury will begin to use its massive TGA cash balance to inject hundreds of billions of dollars in liquidity into the market. Analysts at Goldman Sachs and Citigroup predict that the government shutdown is most likely to end around the second week of November.

Prediction markets show that the probability of the government reopening before mid-November is about 50%. Some Republican senators have stated that they are "very confident" about reaching an agreement this week, potentially resolving the deadlock as early as Thursday. Tuesday's local elections are considered a key factor; once the elections are over, the Democrats may no longer have a reason to continue obstructing.

So for BTC and ETH, we buy more as the price drops; there are still many opportunities!

This position can be used to build a part of the base position; if the U.S. government reopens and the price goes up, at least there will be a base!

If it doesn’t reopen, and the price falls again to around 2910, we will continue to add to our position.

So no matter what, we won't miss out on cheap chips!

#eth

#btc

#sol